Growth in remittances slows to 5.99%

Growth in remittances slows to 5.99%

REMITTANCE GROWTH remained healthy in February despite a seasonal slump, the Bangko Sentral ng Pilipinas (BSP) reported yesterday, as demand for Filipino workers remained strong.

Filipinos working and living abroad sent $1.682 billion home in February, steady from the $1.681 billion a month before, central bank data showed.

The result was up 5.99% from a year earlier, stronger than the BSP’s 5% full-year forecast, but the growth was also the slowest since September.

Central bank Assistant Governor Cyd N. Tuaño-Amador pointed to an element of seasonality, noting that remittances tend to spike in the latter part of the year during the holidays. Transfers are then scaled back in the beginning of the new year, rising anew in time for the midyear opening of schools.

Remittances totaled $3.363 billion year to date, a 6.97% jump from the same period last year.

“The steady deployment of overseas Filipino workers remained a primary contributory factor…,” the BSP said in a statement.

It noted that the Philippine Overseas Employment Administration had recorded the approval of 219,206 job orders in the first quarter. Most were for service, production and professional, technical and related positions in Saudi Arabia, the United Arab Emirates, Taiwan, Qatar and Kuwait.

The Labor department, the BSP added, has also cited growing opportunities in Hong Kong and Taiwan. Coupled with the lifting of a deployment ban to Iraq, Yemen and Eritrea, the central bank said these developments could support the sustained influx of remittances.

Overseas remittances hit a record-high of $21.391 billion last year, 6.3% up from 2011’s $20.117 billion and breaching the central bank’s 5% growth forecast. –Diane Claire J. Jiao, Senior Reporter, Businessworld

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