Growth of remittances slows to 3.7% in March

MANILA, Philippines – The rate of growth of personal remittances sent by Filipinos working and living abroad has slowed to 3.7% in March, marking a possible impact of the global slowdown to a key driver of the Philippine economic growth.

On Wednesday, May 15, the data released by the Bangko Sentral ng Pilipinas (BSP) showed that personal remittances in March reached $1.9 billion. 

Personal remittances represent the sum of net compensation, household-to-household transfers in cash and kind, and capital transfers of overseas Filipino workers. 

Remittances, which have stayed resilient in the past amid budget cuts and economic woes in some host countries of overseas Filipino workers (OFW), have buoyed Philippine economic growth above 6%. Philippine exports have not been as lucky, registering declines as global demand weakens.  

The March figure brought the first quarter total personal remittances to $5.6 billion, a 6.2% increase from the $5.3 billion a year ago.  

Cash remittances sent by Overseas Filipino Workers (OFWs) reached $5.1 billion in 2013, up 5.6% from the $4.8 billion posted in same quarter a year ago. 

“Remittances remained strong partly on account of sustained demand for skilled Filipino workers overseas. Latest reports from the Philippine Overseas Employment Administration (POEA) indicated that approved job orders totaled 292,483 in January to April 2013, of which about 27% consisted of processed job orders mainly for services, production, professional, technical and related workers,” Central Bank Governor Amando M. Tetangco, Jr. said. 

The BSP said cash remittances from sea-based workers increased by 6.1% to $1.2 billion while remittances from land-based workers increased by 5.4% to $3.9 billion in the January to March period.

The primary sources of cash remittances in the first quarter of 2013 were:

• United States – 42.6% of the total
• Canada – 8.2%
• Saudi Arabia – 7.9%
• United Kingdom – 5.7%
• United Arab Emirates – 4.5%
• Singapore – 4.2%
• Japan – 3.7%

“(The) processed job orders were largely intended for the manpower requirements of Saudi Arabia, United Arab Emirates, Qatar, Hong Kong, and Kuwait. Continued efforts by the government to promote the welfare of OFWs are expected to boost remittances further,” the BSP said. 

The Central Bank said some of these efforts includes the POEA’s agreements such as the bilateral labor agreement signed with the German Federal Employment Agency in March 2013. The agreement provides for favourable working conditions for Filipino health care professionals with those granted to German professionals. – Rappler.com