WHILE FILIPINOS WORKING abroad are credited for helping boost the economy, the government’s long-term goal for the workers is for them to return home, the National Economic and Development Authority said.

“We want to expand the Philippine economy, so there is no need for Filipinos to work abroad,” acting Neda Director General Augusto Santos said in an economic briefing last Friday.

The strengthening of the peso, which monetary officials said was partly due to rising foreign investments, is being blamed for the shrinking value of remittances sent by Filipinos abroad.

With their income continuing to decline, overseas Filipinos and their families are urging the government to solve the problem of an appreciating local currency.

Because remittances from overseas Filipinos bolster consumer spending, which is a main driver of growth of the overall economy, some analysts predicted that the further rise of the peso would drag down the country’s growth.

But economic managers said an appreciating peso has its benefits. A strong peso reduces the government’s dollar-denominated debts, allowing it to spend more on social services and infrastructure.

Santos admitted that a rising peso has adversely affected the income of overseas Filipinos. But he explained that the rise in foreign investments, along with a strengthening peso, would result in an increase in employment in the long term.

Increase in available jobs in the country should encourage overseas Filipinos to go home. This way, their income won’t have to shrink with a rising peso, he said.

According to the Bangko Sentral ng Pilipinas, remittances sent by overseas Filipinos through banks and other formal channels reached $14.4 billion last year, up 13.2 percent from the 2006 level.

The remittances was equivalent to 10 percent of the gross domestic product of P6.65 trillion for 2007.