Yolanda, holidays fuel December remittances

MANILA, Philippines – Remittances posted their fastest monthly growth for 2013 in December as overseas Filipino workers (OFWs) sent more money to their loved ones ahead of the Christmas and New Year celebrations.

Many OFWs were also forced to send more to support families affected by Typhoon Yolanda (Haiyan).

The Bangko Sentral ng Pilipinas (BSP) said cash remittances totaled $2.2 billion in December, 9.1% higher than the level registered in the same month of 2012. This was faster than the 7.5% rise in November, and the rates recorded in the previous months.

For the full year, cash remittances reached $22.8 billion, a 6.4% annual increase. These remittances came largely from the US, Saudi Arabia, United Kingdom, United Arab Emirates, Singapore, Canada and Japan.

The BSP said remittances continued to grow on the back of the huge demand for Filipino labor overseas.

Data from the Philippine Overseas Employment Administration indicated there were 1.8 million OFWs deployed last year, while approved job orders totaled 793,415.

A key driver of domestic consumption, remittances account for over 10% of the country’s economic output.

Lifeline

OFW remittances proved to be a crucial, direct lifeline for families affected by Yolanda. (READ: OFWs once more a typhoon lifeline)

Considered one of the strongest typhoons ever recorded, Yolanda generated freak storm surges that swallowed up entire towns in central Philippines.

The government and private sector are exerting all efforts to rehabilitate ravaged areas, and bring back the livelihood of typhoon victims.

Analysts said cash coming from overseas usually spikes when a major disaster strikes the country. – Rappler.com