PHILIPPINE STAR - February 17, 2009

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OFW remittances hit record high of $16.4 billion

MANILA, Philippines - Despite the global financial crisis, remittances from Filipinos working abroad beat expectations, rising by 13.7 percent to hit a record high of $16.4 billion in 2008 from a year ago level, the Bangko Sentral ng Pili-pinas (BSP) reported yesterday.

Last year’s remittances exceeded the central bank’s target of $16.3 billion.

For December alone, remittances hit $1.4 billion, an increase of 0.8 percent over the same period in 2007, the BSP said.

The major sources of remittances in 2008 were the United States, Saudi Arabia, Canada, the United Kingdom, Italy, the United Arab Emirates and Japan.

“Amidst the challenges posed by the global financial market strains and the economic downturn experienced by host economies, remittances from overseas Filipinos remain a dependable source of foreign exchange for the economy,” BSP Governor Amando M. Tetangco Jr. said.

He attributed the increase to sustained demand for Filipino workers abroad, particularly professionals and skilled workers.

Government figures show that Filipinos who went abroad to work in 2008 rose 27.8 percent to $1.376 million.

The central bank said it expects a contraction in the number of workers deployed to countries that are suffering from the global financial crisis but it added that there appeared to be strong demand for workers in countries such as Canada, Bulgaria, Australia, the United Arab Emirates and Qatar.

The Philippines is one of the world’s leading sources for skilled and unskilled workers with up to nine million people, about 10 percent of the population, living and working in 140 countries.

Their remittances have become a major pillar in supporting the economy contributing to about 10 percent of the country’s gross domestic product.

The government has been promoting the deployment of more workers overseas as the world financial crisis sent exports plunging 40 percent in December.

Preliminary data from the Philippine Overseas Employment Administration (POEA) showed that the number of Filipinos deployed abroad in 2008 rose considerably by 27.8 percent to 1,376,823 from 1,077,623 in 2007.