MANILA, Philippines – Money sent home by Filipinos working abroad reached another record high in 2011, despite economic and geopolitical crises, as well as disasters, in most of the host countries.
Remittances in 2011 reached US$20.14 billion, a 7.2% increase from the previous year’s.
The continuing rise in total remittances defy the impact of the global slump on another major dollar-earner: exports.
Exports in 2011 slumped 6.9%, steeper than expected, due to similar global events. The poor exports performance was one of the major reasons for the steep drop of the overall growth of the gross domestic product, or GDP, of the Philippines to 3.7% in 2011 from the previous year’s 7.6%.
Remittances, on the other hand, contribute around 9% to the Philippine economy by stimulating domestic demand, according to the Bangko Sentral ng Pilipinas.
It fuels sales in retail, real estate, and financial services industries.
The Philippines is the 4th biggest recipient of remittances next to China, India, and Mexico.
Below are the main sources of remittances from Filipinos:
The pace of growth has been slowing down through the years.
For 2012, the government expects remittances to grow slower by 5%.