World Bank report cites risk to remittances

THE PHILIPPINES remained the world’s fourth highest recipient of remittances from nationals in 2009, even as these flows face risks from high unemployment rates in host economies, the World Bank said in a report, Migration and Development Brief, posted on its Web site last April 23.

The report showed the Philippines trailed only India ($49 billion), China ($48 billion) and Mexico ($22 billion). Remittance flows to developing countries could grow 6% to $335 billion this year, a turnaround from 2009’s 6.2% dip to $316 billion, it added.

Central bank data show that money sent home by Filipinos abroad beat official projections of a 4% rise last year, actually growing 5.6% to $17.35 billion. These flows grew by an even faster 7.75%, year on year, to $2.786 billion in the first two months of this year, the same data show.

But the report said remittance growth could be tempered by uncertain employment prospects in high-income markets. “… high unemployment rates… in receiving countries… may give rise to pressure to impose additional restrictions on new immigration,” it said, adding that such outloook could also dissuade high-skilled workers — a source of big remittance values — from migrating.  –Businessworld