Remittances to grow 4%

Written by Jun Vallecera / Reporter

Thursday, 15 October 2009 23:13

LATEST data indicate that there should be continued expansion in the volume of remittances averaging at least 4 percent for the whole year, the Bangko Sentral ng Pilipinas (BSP) said on Thursday. In the first eight months, overseas Filipino workers’ (OFW) remittances already totaled $11.3 billion, representing an annual growth of 3.7 percent. In August alone the remittance flows totaled $1.4 billion for an annual growth rate of 2.8 percent. BSP Governor Amando Tetangco Jr. said in a statement the remittance flows continued to underpin the resilience of the economy and remained a stable source of foreign exchange for the country. Such flows were supported by sustained deployment of skilled Filipinos in various workplaces around the world and by increased OFW access to financial services offered by banks and by remittance centers. In the recent past, a significant amount of the remittances were coursed through nonformal channels although this number has steadily diminished to maybe 4 percent or even lower. “As recent developments point to improving global economic conditions, a more favorable outlook for remittances through end-2009 is anticipated,” Tetangco said. He kept faith with the Filipino work ethic no matter where the Filipino worker was in the world, and previously stood alone in saying the remittances will continue to expand no matter the dour outlook painted by economists and other experts. At the economic briefing on Thursday, Tetangco said OFW remittances this year should grow at least 4 percent to more or less $17.1 billion from last year’s $16.4 billion. In a related development, portfolio investments or so-called hot money, posted net inflows totaling $229.13 million at end-September, a reversal from year-ago outflows totaling $889.15 million. “Amid the global economic slowdown, investor sentiment in the Philippines remained relatively upbeat owing to the better-than-expected economic performance during the first half of 2009 supported by robust remittances, easing inflation and interest rates, and sound macroeconomic policies,” Tetangco said from Cebu City, where he and six other members of the Monetary Board are meeting. The central bankers are in the Visayas as part of their advocacy promoting financial literacy among Filipinos. While in town, Tetangco and top BSP executives will meet with private bankers, their clients and the general public to generate awareness of the importance of being financially informed, how this may be achieved and what the entire economy could profit from financially savvy Filipinos.