More cash remittances sent worldwide in 2021 went to increased medical and educational expenses, particularly those sent to the Philippines, as the COVID-19 pandemic continued to ravage the global economy, according to WorldRemit.
The London-based digital payments firm conducted in December a survey involving 3,191 customers in the United Kingdom, United States and Canada.
Results showed that the pandemic had prompted senders to adjust their remittance habits, such that more than two-thirds (68 percent) of respondents sent money overseas at least monthly while close to one-third did so more than once yearly.
A separate report from Research and Markets predicted that remittance inflows would grow by 1.2 percent yearly in the five years after the COVID-19 pandemic first broke out, to reach an estimated $745.1 billion by 2025.
According to the Bangko Sentral ng Pilipinas, remittances from overseas Filipino workers increased by 5.3 percent to $31.59 billion from January to November 2021 from $29.99 billion in the same period of 2020.
WorldRemit’s customer survey showed that the Philippines had the most number of senders for a single country, with 18 percent of respondents sending money here.
Trailing at far second and third were the African countries of Nigeria with 11 percent of respondents and Ghana, 10 percent.
Of those surveyed, 44 percent said the amount they send for medical expenses had increased, while 41 percent said they sent more funds for daily expenses.
Meanwhile, 38 percent said they sent more for payment of utility bills while 35 percent said they sent more for educational expenses.
WorldRemit saw a decline in remittances earmarked for business investments and for deposit to one’s own bank account. The company said, however, the numbers were not significant.
“Many of our customers move abroad for better work opportunities and for the chance to earn better money,” WorldRemit said. “They then send some of that money home in support of their loved ones—a real act of selflessness, which we are honored to support with our services.”