OFW remittances projected to grow by up to 8% in 2011
Remittances from overseas Filipinos are expected to grow by as much as 8 percent to $20.3 billion from year-ago level, as global demand for Filipino workers remained strong despite economic problems in labor markets in the West.
This was according to the latest issue of “The Market Call,” a joint publication of First Metro Investments Corp. (FMIC) and University of Asia and the Pacific (UA&P), which said remittances for this year could grow by 6 to 8 percent from $18.8 billion last year.
Growth in remittances was already at 7.1 percent as of end-October, according to data from the Bangko Sentral ng Pilipinas, and The Market Call said this could accelerate in the remainder of the year.
“OFW (overseas Filipino workers) remittances will continue to be robust during the Christmas season,” the publication said.
The Market Call said remittances, which boost the country’s total reserves of dollars and other foreign currencies, were expected to help keep the peso stable throughout this year.
The peso remains in the 43-to-a-dollar territory.
“The peso-dollar exchange rate will continue to be contained even with the instability of the global market given that the Philippines has a high foreign exchange reserve,” according to the publication.
The Market Call’s remittance forecast is just about the same as that of the BSP, which sees money from Filipino migrants growing by 7 percent this year to $20.1 billion from last year’s $18.8 billion.
The BSP said remittances, which amounted to $14.8 billion in the first three quarters, would remain strong in the fourth quarter as indicated by job orders that have been processed.
Citing report from the Philippine Overseas Employment Administration (POEA), the central bank said that from January to August this year, the number of overseas land-based work contracts processed totaled 933,579. Processed sea-based work contracts totaled 316,411.
“Data on job orders abroad provide support for a stable outlook on the growth of remittances in the last quarter of 2011,” the BSP said in an earlier statement.
Economists said growth projections for remittances, although slower than the double-digit pace in the previous years, are favorable considering a backdrop of economic problems in the United States and the Euro zone, which are two of the biggest markets for migrant workers.
The country’s major sources of remittances are the United States, Canada, Saudi Arabia, United Kingdom, Japan, United Arab Emirates, Singapore, Italy, Germany and Norway, the BSP said.
Other countries that have significant demand for Filipino workers include United Arab Emirates, Qatar, Kuwait, Tiwan and Hong Kong.
