OFW money a saving grace for PHL economy in 2012

Remittances — along with robust consumer spending and stable commodity prices —will act as a saving grace, helping buoy the Philippine economy next year.   Despite the global economic uncertainties, remittances from overseas Filipino workers (OFWs) will grow in 2012, albeit slower at 8 percent from double-digit growth in previous years.   Bangko Sentral ng Pilipinas (BSP) Governor Armando Tetangco Jr. expects strong demand for Filipino workers abroad — an assurance of steady inflow of remittances.   His attitude is based on the number of approved job orders that increased by 11.6 percent to 645,775 in January to November this year compared from 578,535 a year earlier.   These are production, service, professional and technical jobs in Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Hong Kong and Taiwan.    BSP data showed that OFWs sent $16.53 billion to the Philippine in the 10 months to October, up 7 percent from $15.45 billion a year earlier.   The World Bank (WB) estimates OFW remittances at $23 billion this, making the Philippines the fourth largest remittance-receiving country after India, China and Mexico.   WB development prospects group director Hans Timmer said remittance flows to developing countries have been resilient. "Remittance flows to all developing regions have grown this year for the first time since the financial crisis," he said.   The risks   However, WB noted certain risks for the Philippines such as Saudi Arabia's plan to replace foreign labor with local workers. Over 1 million OFWs now work in Saudi Arabia.   It also mentioned persistent high rates of joblessness in US and Europe, as well as volatile exchange rates and oil prices.   A report published by First Metro Investment Corporation (FMIC) and University of Asia and the Pacific (UA&P) last November also noted a robust demand for Filipino workers next year, projecting growth in remittances of more than 8 percent.   The amount of money sent home by OFWs may even bounce back to double-digit growth in the coming months, according to the FMIC-UA&P report.   Money from OFWs will keep coming because of the relatively stable peso-dollar exchange rate.   “The peso-dollar exchange rate will continue to be contained even with the instability of the global market given that the Philippines has a high foreign exchange reserve,” it explained.   A comfortable range   The FMIC and UA&P report said the peso exchange rate remained within a comfortable range of P43 to P44, with remittance inflows beefing up the country’s dollar reserves.   “Fitch Ratings said that the Philippines can withstand the effect of financial pressures because of its sturdy foreign exchange reserves,” it added.   Similarly, global money transfer firm Western Union predicts strong inflow of OFW remittances next year.   Patricia Ringen, senior vice president for Western Union's Pacific and Indochina, said the company continues to meet the fast-changing money transfer needs of Filipino consumers.   Data from the Philippine Overseas and Employment Administration showed that 1.47 million Filipino workers were deployed in 2010. — VS, GMA News

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Pacquiao pleads for Indonesia to spare death row Filipina
    Pacquiao pleads for Indonesia to spare death row Filipina

    World boxing superstar Manny Pacquiao took time out Monday from final preparations for his $400 million megafight with Floyd Mayweather to plead for the life of a Filipina on death row in Indonesia. Pacquiao, a national hero in the Philippines, added his voice to a chorus of global opposition led by United Nations Secretary General Ban Ki-moon to the executions of a group of eight foreign drug convicts, including compatriot Mary Jane Veloso. The eight-division world champion, who will face …

  • Halt Indonesia drug executions until graft claims probed: Australia
    Halt Indonesia drug executions until graft claims probed: Australia

    Australia urged Indonesia Monday to delay the execution of two men for drug offences until a corruption probe into their case is complete, after a report that judges sought tens of thousands of dollars in bribes. "Bali Nine" drug traffickers Myuran Sukumaran and Andrew Chan could face the firing squad within days, along with others from Brazil, Nigeria, the Philippines and an Indonesian prisoner. The Indonesian attorney-general's office said the executions would take place this week but did …

  • FordPH Launches the All-New Mustang
    FordPH Launches the All-New Mustang

    Ford Philippines launched the all-new Mustang in a rock concert held at Bonifacio Global City, Taguig, last week .  The All-New Mustang is the sixth generation since Ford  launched the first model in April 17, 1964. “The all-new Mustang represents the very best of Ford and its arrival marks the latest chapter of the iconic muscle car’s rich legacy, crafted with a more contemporary look and feel.  With a history spanning more than 50 years, this iconic car is at the heart and soul of Ford and …

  • China maritime tensions dominate Southeast Asia summit
    China maritime tensions dominate Southeast Asia summit

    By Manuel Mogato and Praveen Menon KUALA LUMPUR (Reuters) - Southeast Asian leaders edged closer to open criticism of China's land reclamation in the disputed South China Sea at a regional summit on Monday, as the Philippines drew the ire of Beijing which called its objections to the work "unreasonable". The Association of Southeast Asian Nations (ASEAN) Summit in Kuala Lumpur, which was supposed to showcase the 10-member bloc's progress towards economic integration, was overshadowed by the …

  • The ‘All You Need’ 2015 Isuzu D-MAX launched
    The ‘All You Need’ 2015 Isuzu D-MAX launched

    Isuzu Philippines Corporation (IPC) just recently introduced the 2015 Isuzu D-MAX pick-up truck at the Clark International Raceway to show that their pick-up model can conquer any kind of terrain.The high-end LS variant and standard LT 4x4 is now equipped with a more powerful engine, the 4JK1-TC (Hi) 2.5-liter engine which with Common Rail Direct Injection and an intercooled Variable Geometry System (VGS) turbocharger. IPC also introduced a new standard ride variant, the LT-X 4x2 manual …

  • Limited Edition Honda CR-V and Jazz now available
    Limited Edition Honda CR-V and Jazz now available

    If you’ve always wanted to be part of an exclusive group of car owners, now might be the time for you to consider getting a Honda CR-V or Jazz.  Honda Cars Philippines Inc. (HCPI) just came out with their limited edition All New Jazz and New CR-V. …

  • ToyotaPH hit its highest monthly sales last March
    ToyotaPH hit its highest monthly sales last March

    Toyota Motors Philippines hit its highest monthly sales to date last March, registering 10,237 units sold.  This recent CAMPI report puts Toyota’s market share at 43.5% last month. …

  • VolkswagenPH launches Child Safety Initiative
    VolkswagenPH launches Child Safety Initiative

    Volkswagen Philippines just  launched the VW Child Safety Initiative (CSI) campaign which aims to support child safety on Philippine roads at the just concluded Manila International Auto Show (MIAS). The World Health Organization’s road safety facts show about 1.24 million die each year globally as a result of vehicle related accidents. Child restraint systems like child seats and booster seats also reduce risk for children by about 70% for infants and upto 80% for small children. This …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options