EU remittance drop feared

THE National Economic and Development Authority (NEDA) warned that the debt crisis in Europe could dampen remittances, as fresh data showed the global financial turmoil has crimped money sent home by Filipinos working in the eurozone.

“If the European crisis did not contain, the effect of that is lower remittances. It can dampen remittances and exports,” acting Socioeconomic Planning Secretary Augusto Santos said.

“That is why we are monitoring the European crisis,” he added.

The Bangko Sentral ng Pilipinas earlier projected that remittances are likely to grow at least 8 percent this year.

In 2009, remittances grew by 5.6 percent to $17.3 billion despite the global financial crisis.

Data released by the National Statistics Office over the weekend showed that overseas Filipino workers (OFW) in Europe sent P11.48 billion from April to September last year, lower than the P14.62 billion sent in the same period in 2008.

The Statistics Office said about 8.3 percent of the 1.9 million OFWs last year were based in Europe.

OFWs in Asia, comprising 79.3 percent of the total pool, sent home the biggest amount at P71.2 billion.

This was followed by Western Asia, P46.06 billion; East Asia, P17.48 billion, and North and South America, P12.022 billion.

Remittances sent by OFWs between April and September last year were estimated at P138.5 billion.

The office said these remittances included cash sent home amounting to P102.5 billion; cash brought home, P31.4 billion; and remittance in kind, P4.5 billion.

Among occupation groups, laborers or unskilled workers sent home the biggest amount at P18 billion.

This was followed by plant and machine operators, P17.36 billion; traders and related workers, P17.33 billion; professionals, P16.5 billion; and service workers and shop and market sales workers, P13.09 billion.

The office said 21.6 percent of OFWs worked in Saudi Arabia, which remained the top destination between April and September last year.

OFWs who worked in the United Arab Emirates comprised 15.4 percent of the total. Hong Kong and Singapore, each with a 6 percent share, were the other popular destinations of OFWs. –DARWIN G. AMOJELAR Senior Reporter, Manila Times