Phl 4th in overseas workers’ remittances

MANILA, Philippines – The Philippines emerged as the world’s fourth biggest recipient of remittances in 2010, behind India, China and Mexico, according to a report released recently by the World Bank (WB).

According to the report, remittance inflows to India amounted to $55 billion followed by China with $51 billion, Mexico with $22.6 billion and the Philippines with $21.3 billion.

Other leading recipient of remittances are: France, $15.9 billion; Germany, $11.6 billion; Bangladesh, $11.1 billion; Belgium, $10.4 billion; Spain, $10.2 billion; Nigeria, $10 billion; Pakistan, $9.4 billion; and Poland, $9.1 billion.

Worldwide remittance flows are estimated to have exceeded $440 billion in 2010. Of the amount, developing countries received $325 billion, which represents an increase of six percent from the 2009 level.

But the World Bank report said that the true size, including unrecorded flows through formal and informal channels, is believed to be significantly larger. Recorded remittances in 2009 were nearly three times the amount of official aid and almost as large as foreign direct investment (FDI) flows to developing countries.

The report noted that remittance in?ows have remained more resilient compared with private debt and equity ?ows and foreign direct investment, and despite economic downturns in host countries.

Other findings indicate that remittances are sent by the cumulated ?ows of migrants over the years, not only by the new migrants of the past year or two.

According to the World Bank report, because of a rise in anti-immigration sentiments and tighter border controls in the United States and Europe, the duration of migration appears to have increased. Those migrants staying back are likely to continue to send remittances.

“When migrants return to their country of origin, they are likely to take back accumulated savings. Also the ‘safe haven’ factor, or ‘home bias,’ can cause remittances for investment purposes to return home during an economic downturn in the host country,” the World Bank report said. -Ted P. Torres (The Philippine Star)