Remittance growth steady at 7.4% in August

MANILA, Philippines – Remittance growth was steady at 7.4% in August, thanks to the sustained deployment of Filipino workers abroad, a central bank statement said Wednesday, October 16.

Filipinos based overseas sent home $2.1 billion cash and other items in August, marking the 5th consecutive month that personal remittances hit the $2-billion mark.

This brought total remittances for the first 8 months of 2013 to $16 billion, up 6% year-on-year.

In July, remittances also grew by an annual 7.4% to $2.1 billion.

Many Filipino families depend on money from relatives abroad for their needs at home like food, education and medical care.

Remittances are a key driver of domestic consumption, accounting for over 10% of the Philippines’ gross domestic product.

“The steady deployment of overseas Filipino workers remained one of the key drivers of the growth in remittance flows,” the Bangko Sentral ng Pilipinas (BSP) said.

The Philippine Overseas Employment Administration received 542,367 job orders in January to August, of which about 39% were for service, production, professional and technical positions abroad. The job orders came from Saudi Arabia, United Arab Emirates, Kuwait, Taiwan, Hong Kong and Qatar.

Aside from the strong demand for Filipino labor, BSP said the expansion of bank and non-bank money transfer outlets helped fuel remittance inflows. – Rappler.com