Remittances seen slowing down in Q2

MANILA, Philippines—Growth in remittances to the Philippines may slow down in the second quarter as several Filipino workers based in the Middle East and North Africa returned home, either temporarily or permanently, due to ongoing political tensions in these areas.

This was according to the latest issue of the “Market Call,” the joint publication of First Metro Investments Corp. and University of Asia and the Pacific.

Troubles in the two regions are seen to adversely affect remittances to the Philippines, it said.

“(Growth of) remittances should continue to be at near double-digit pace in the first quarter, but this will slow down in the second quarter in view of the exodus of overseas Filipino workers from troubled countries in the Middle East and North Africa,” Market Call said.

Data from the Bangko Sentral ng Pilipinas showed that remittances reached an all-time high of $18.76 billion last year, up by 8.2 percent from $17.35 billion in the previous year.

Prior to the string of political tensions in Middle Eastern and North African countries, remittances were projected to grow by another 8 percent this year.

BSP officials recently said the official remittance forecast might be reviewed in light of these developments.—Michelle V. Remo