Remittances seen to reach $23B in 2011

The World Bank expects remittances to the Philippines to reach $23 billion this year on account of rising demand for Filipino workers despite the unfavorable economic climate abroad.

The institution’s forecast is higher than the Philippine government’s own estimate of $20.1 billion, which represents a 7-percent growth from the $18.8 billion reported last year.

Also, World Bank said the Philippines would likely remain the fourth largest recipient of remittances after India (expected to receive $58 billion), China (seen with $57 billion), and Mexico (with $24 billion).

For all developing countries, remittances are expected to hit a total amount of $351 billion, representing an 8-percent increase from last year’s $323 billion.

This year may be the first time when remittances to developing countries will grow since the global financial crisis of 2008, World Bank said. The Philippines has proved to be an exception as it continues to experience rising remittances even at the height of the global turmoil in 2009.

“Despite the global economic crisis that has impacted on private capital flows, remittance flows to developing countries have remained resilient,” said Han Timmer, World Bank director for development prospects group.

World Bank also said remittances to developing countries would continue to grow through 2014 buoyed by prospects of the global economy’s modest growth.

Remittances are a closely watched economic indicator. For the Philippines, remittances from about 10 million overseas workers significantly fuel consumption of Filipino households that, in turn, drives growth of the domestic economy.