Growth in remittances is not expected to reach a plateau just yet and may even accelerate in the next few years on the back of growing demand for Filipino workers abroad, according to a report that appeared in the latest issue of The Market Call, a joint monthly publication of First Metro Investments Corp. (FMIC) and University of Asia and the Pacific (UA&P).
“The level of remittances continued to be buoyant amid weak global economy, and is now poised to expand its stimulation effect on the domestic economy,” the report said. “The steady deployment of overseas Filipino workers remained the growth driver of remittances.”
The Market Call report cited government data where, in the first quarter of the year, 219,206 approved job orders were placed by employers outside the country. The orders came mostly from countries in the Middle East.
Some analysts believe that remittances to the Philippines will level off soon as employment opportunities abroad are beginning to dry up due to the lingering uncertainties in the global economy, particularly the ongoing crisis in the euro zone.
But in the Market Call report, data showed that Filipino workers are still being deployed overseas as Philippine government officials continue to forge agreements with their counterparts abroad.
The Market Call cited the Philippines’ labor agreement with Germany, where Filipino healthcare professionals are in high demand.
The Bangko Sentral ng Pilipinas earlier reported that remittances to the country in the first quarter of the year amounted to $5.11 billion, up 5.6 percent from the $4.84 billion registered in the same period of 2012.
With over 10 million Filipinos based overseas, the Philippines is now the fourth biggest recipient of remittances after China, India and Mexico.
Remittances are a closely watched economic indicator given its significant contribution to the country’s growth. The government estimates that at least 10 percent of Filipino households rely on the cash sent in by family members working abroad.