OFW remittances hit $10 billion in January-July

MANILA, Philippines – Remittances from overseas Filipino workers (OFWs) surged to $1.5 billion in July, posting the highest year-on-year growth for 2009 at 9.3 percent, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

This development brought cumulative remittances for the first seven months of the year to $10 billion, up by 3.8 percent from the year-ago level.

However, despite the 9.3-percent year-on-year growth in July, the latest growth figures pale in comparison compared to the 24.6- percent increase recorded in July 2008 when remittances grew to $1.4 billion from $1.09 billion in July 2007.

Nevertheless, BSP Governor Amando M. Tetangco Jr. said the latest figures indicate that remittances would stay robust throughout the year.

“Given sustained remittance flows at the onset of the second half of the year and continuing signs of improving global economic conditions, remittances are anticipated to remain stable for the remainder of 2009 and will continue to be a major growth driver of the economy,” Tetangco said.

Sustained demand for Filipino manpower worldwide combined with greater access by overseas Filipinos and their beneficiaries to expanded remittance transfer facilities helped sustain remittance flows, the BSP chief added.

A report of the Philippine Overseas Employment Administration showing a deceleration in the rise in the number of displaced OFWs as a result of the global financial crisis reflected these signs of adjustment and subsequent stabilization in the global economy.

The expected steady stream of remittances will draw continuing support from the strong deployment of Filipino workers overseas following the employment agreements forged between the Philippines and host countries such as Qatar, Saudi Arabia, Canada, Australia, Japan, South Korea and Taiwan.

The BSP said that apart from these recruitment prospects, the government has started crafting guidelines on the deployment of overseas Filipino workers to provide the manpower requirements for the massive military base expansion in Guam starting next year.

The increase in the number of remittance centers abroad and the establishment of more tie-ups with foreign financial institutions have resulted in greater capture of remittances, the BSP added.

The aggressive marketing efforts of banks and non-bank remittance centers to provide enhanced financial services to cater to the various needs of overseas Filipinos are anticipated to further facilitate the flow of remittances.

Major sources of remittances during the seven-month period were the United States, Canada, Saudi Arabia, UK, Japan, Singapore, United Arab Emirates, Italy, and Germany.

In 2008, remittances hit $16.4 billion and the BSP expects dollar inflows from overseas Filipinos to reach the same number by yearend. –Iris C. Gonzales (The Philippine Star)