Remittances seen to grow by 5% in to P 21Billion in Year 2012 - BSP
Michelle V. Remo, Philippine Daily Inquirer
7:40 pm | Monday, December 5th, 2011
Remittances are seen to further grow by 5 percent in 2012, as demand for Filipino labor by employers in various parts of the globe remains robust.
This is according to the Bangko Sentral ng Pilipinas, which said that money to be sent by migrant Filipinos may hit at least P21.105 billion in 2012 from the estimated P20 billion in 2011.
The 5-percent growth rate in remittances in 2012 would actually be a slowdown from the estimated 7-percent rise this year.
Quoting data from the Philippine Overseas Employment Administration (POEA), the central bank said the rising demand for Filipino workers in alternative labor markets compensated for the adverse impact on remittances by the weak US and eurozone economies.
Monetary authorities said remittances in 2012 would thus continue to support the consumption of Filipino households that has been one of the key drivers of the economy.
Latest remittance data from the BSP showed that money from migrant Filipinos amounted to $14.8 billion in the first nine months of the year, up 7.1 percent year on year.The Philippines, with more or less 10 million Filipino migrants, is the fourth-biggest remittance-receiving countries, next to China, India and Mexico.
The BSP said remittances fueled growth of the economy so far this year, which grew by 3.6 percent in the first three quarters from a year ago. Economists said that if not for the rising remittances, which help consumer spending, the economy’s growth could have been slower.
Meantime, the BSP said that aided by remittances, the country’s balance of payments (BOP) for 2012 would likely post a surplus to the tune of $2.8 billion again.
BOP is the difference between the inflows and outflows of foreign currencies, led by the US dollar. A surplus indicates that the inflows, composed largely of remittances and export earnings, are more than the outflows that are led by payments for imported goods and foreign debts.
A surplus in the BOP increases the country’s overall reserves of foreign exchange, or the gross international reserves (GIR), which currently stand at about $75.8 billion, as of the end of October.
GIR indicates the country’s ability to service its foreign currency-denominated liabilities, such as payment for imported goods and services, and payment of foreign debts.
The projected BOP surplus for 2012, however, is less than the estimated $10 billion for this year. The decline is anchored on expectations that export earnings may drop further as the economic woes in the United States and the eurozone persist, although they are seen to somewhat abate.
Remittances seen to reach $23B in 2011
Michelle V. Remo
Philippine Daily Inquirer
11:54 pm | Thursday, December 1st, 2011
The World Bank expects remittances to the Philippines to reach $23 billion this year on account of rising demand for Filipino workers despite the unfavorable economic climate abroad.
The institution’s forecast is higher than the Philippine government’s own estimate of $20.1 billion, which represents a 7-percent growth from the $18.8 billion reported last year.
Also, World Bank said the Philippines would likely remain the fourth largest recipient of remittances after India (expected to receive $58 billion), China (seen with $57 billion), and Mexico (with $24 billion).
For all developing countries, remittances are expected to hit a total amount of $351 billion, representing an 8-percent increase from last year’s $323 billion.
This year may be the first time when remittances to developing countries will grow since the global financial crisis of 2008, World Bank said. The Philippines has proved to be an exception as it continues to experience rising remittances even at the height of the global turmoil in 2009.
“Despite the global economic crisis that has impacted on private capital flows, remittance flows to developing countries have remained resilient,” said Han Timmer, World Bank director for development prospects group.
World Bank also said remittances to developing countries would continue to grow through 2014 buoyed by prospects of the global economy’s modest growth.
Remittances are a closely watched economic indicator. For the Philippines, remittances from about 10 million overseas workers significantly fuel consumption of Filipino households that, in turn, drives growth of the domestic economy.