World Bank sees remittances to PH hitting $24B

The World Bank has projected that remittances to the Philippines in 2012 will hit $24 billion, making the country the world’s third-largest recipient of money sent by migrants.

The amount represents a 19-percent increase from the $20.1 billion sent by Filipinos overseas last year.

The World Bank’s forecast tops the 6-percent remittance growth projected by the Bangko Sentral ng Pilipinas.

The BSP earlier said remittances were expected to remain robust due to strong demand for Filipino workers in labor markets outside the eurozone.

The World Bank said the Philippines would likely share the spot with Mexico, whose migrant workers are likewise seen to send $24 billion back home.

India is expected to be the world’s largest recipient of remittances with $70 billion, followed by China with $66 billion.

The World Bank said the estimates indicated that the crisis in the eurozone, which accommodates a significant number of migrant workers from all over the world, had not substantially affected remittances.

It said, however, that total remittances worldwide could have grown at a faster rate if not for the crisis.

Total remittances worldwide for 2012 is projected to reach $534 billion. Of the amount, the bulk of $406 billion represents the share of remittances to developing countries, which translates to a 6.5-percent growth from year-ago level.

The World Bank said remittances to developing countries will likely grow further in the coming years—by 7.9 percent next year, 10.1 percent in 2014 and 10.7 percent in 2015.

“Although migrant workers are, to a large extent, largely affected by the slow growth in the global economy, remittance volumes remain remarkably resilient, providing not only a vital lifeline to poor families but also a steady and reliable source of foreign currency in many countries,” said Hans Timmer, director of the bank’s development prospects group.

In the case of the Philippines, remittances have helped boost its foreign exchange reserves, which now stand at a record high of $82 billion.

There are more than 10 million Filipinos working overseas.