Metrobank expects remittances to the Philippines to grow by 6 percent this year despite the prolonged crisis in the eurozone, saying sustained demand for Filipino workers in other labor markets will boost the amount of money they send home.
In its latest paper containing its economic views, Metrobank said the money sent by overseas Filipino workers in the Middle East and Asia was seen to lead the growth in overall remittances as the expanding economies in those regions required more workforce.
Metrobank also said that OFWs in the United States, which remains fragile despite recovering from a recession since 2009, were in recession-proof industries led by healthcare and education and were thus seen to continue contributing to growth in remittances to the Philippines.
“This likely decline (in remittances growth due to the eurozone crisis) is seen to be offset by the expected growth in remittances especially coming from the Middle East and Asian countries,” Metrobank said in the paper written by research analyst Pauline Revillas.
Metrobank said remittances, given its ability to fuel household consumption, were likely to support faster economic growth for this year compared with 2011.
It said the Philippine economy would likely grow 4.6 percent this year following its 3.7-percent expansion last year.
“The outlook (on remittances) supports our view that GDP growth will be higher at 4.6 percent this year, underpinned by still robust consumption spending and a vibrant services sector,” Metrobank said.
Last year, remittances to the Philippines amounted to $20.1 billion, rising 7.2 percent from the previous year’s $18.3 billion.
The Philippines is the fourth-biggest recipient of remittances after China, India and Mexico. Of the estimated 94 million Filipinos, about 10 percent are believed to be working offshore.