Jan-April remittances rise 7% to $59-B
Money sent home by overseas Filipino workers grew 6.6% in the first 4 months of the year despite the debt woes in Europe, a major source of Philippine remittances.
The Bangko Sentral ng Pilipinas (BSP) reported that OFW remittances reached $5.86 billion in January to April.
In April alone, remittances rose 5.4% from a year ago to $1.52 billion. These came mostly from United States, Canada, Saudi Arabia, Japan, Singapore, the United Kingdom, Italy and the United Arab Emirates.
“Notwithstanding concerns over sovereign debt problems in some European countries, remittances from overseas Filipinos continued to show strength amidst the gradual recovery of the global economy,” the BSP said.
The BSP noted that steady demand for professional and skilled Filipino workers, and increased access of OFWs and their families to formal money transfer channels continued to boost remittance growth.
The central bank expects remittances to rise 8% this year from the record $17.3 billion in 2009.
Remittances drive consumer spending, which fuels more than two-thirds of the Philippines’ gross domestic product (GDP).
The government has raised its GDP growth target this year to 5% to 6% after a faster than expected expansion in the first quarter.
