OFW remittances grew by 8% to $1.74B in September — BSP

MANILA, Philippines — Remittances from overseas-based Filipinos grew anew in September as demand for Filipino workers by employers in various parts of the globe remained strong.

The Bangko Sentral ng Pilipinas reported on Tuesday that remittances amounted to $1.74 billion in September, up by 8.4 percent from $1.6 billion in the same month in 2010.

This brought the total remittances in the first nine months of the year to $14.76 billion, up by 7.1 percent from $13.78 billion in the same period a year ago.

BSP officials said the remittances as of September indicated that the total for the year could hit or surpass the projection of $20.1 billion, which represented a 7-percent rise from last year’s $18.8 billion.

Remittances are a closely watched economic indicator as these help fuel consumption of households that in turn serve as a key driver for growth of the overall economy.

Officials said the sustained rise in remittances has given the country a chance to meet its economic growth target for the year despite the challenges from the external environment, particularly the anemic performances of the US and Euro zone economies.

The government has set a goal for the economy to grow between 4.5 and 5.5 percent for this year. The economy grew by 4 percent in the first semester.

Remittances in September came mostly from Filipinos based in the following countries: the United States, Canada, Saudi Arabia, the United Kingdom, United Arab Emirates, Singapore, Italy, Germany, and Norway.

Remittances from these countries account for about 85 percent, or $12.5 billion, of remittances in the first nine months.

“Remittances continued to be an important contributor in solidifying the country’s economic fundamentals amidst the lingering global economic uncertainties, driven by prospects of sustained demand for Filipino workers abroad,” the BSP said in a statement.

Quoting data from the Philippine Overseas Employment Administration, the central bank said overseas job orders that have been processed for Filipino workers totaled 223,172 from January to October.

The job orders came mostly from Saudi Arabia, United Arab Emirates, Taiwan, Qatar, Kuwait, and Hong Kong.

The central bank said the significant number of job orders indicated that remittances would continue to be strong in the months ahead.

The BSP also said efforts of banks to expand its reach to overseas-based Filipinos also contributed to the increase in remittances. Easier access to remittance channels encouraged migrant workers to send more money, the central bank said.

“The wider remittance network of banks and financial institutions has allowed both the remitters and beneficiaries to experience a more diverse and economical set of money transfer channels and services as well as encourage increased use of the banking system as remittance conduits,” the BSP said.

Banks increase its reach to overseas-based Filipinos mostly by partnering with foreign financial institutions, which agree to get remittances from the Filipino migrants and send the money to the Philippines through the Philippine banks in the country.