Money sent home by overseas Filipino workers (OFW) rose at a stable pace in May, providing much-needed support for the country’s stuttering economy.
In a statement, the Bangko Sentral ng Pilipinas (BSP) said global demand for Filipino talent stayed strong despite weak conditions in several emerging markets. Local banks also continued to expand their international reach, making it easier for migrants to send money back home.
“Remittances remained resilient on the back of sustained demand for skilled Filipino manpower overseas,” the BSP said on Wednesday.
For May, remittances rose by 5.8 percent to $2.10 billion, accelerating slightly from April’s expansion of 5.1 percent. With May’s result, the country is still on track to meeting the full-year forecast by the central bank of a 5 percent increase in remittances.
Between 10 million and 12 million Filipinos work overseas, making the Philippines one of the world’s top labor exporters. The country is the third-largest recipient of cross-border cash transfers behind India and China.
Remittances from OFWs every year reached the equivalent of 8.5 percent of gross domestic product (GDP) in 2014. These cash transfers are seen as a strong driver for consumer spending that makes up two-thirds of domestic output.
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