OFW remittances grow 5.4% in May
According to the Institute for Development and Econometric Analysis, Inc. latest NewsBriefs, personal remittances from overseas Filipinos remain strong, hitting $10.4 billion from January to May 2014 — up by 6.1% from the same period last year. Remittances from land-based and sea-based workers, along with the steady deployment of Filipino workers continue to sustain the growth in remittance flows.
In May 2014, personal remittances reached $2.2 billion, expanding 5.5% from a year earlier; while cash remittances transferred through banks climbed to $2 billion. The five-month tally for cash remittances stood at $9.4 billion. Banks and other remittance service providers are also working to expand coverage both in the domestic and international markets. The Philippine Overseas Employment Administration reports that approved job orders amounted to 371,097 from January to May 2014, ranging from service, technical and professional employment. Almost 80% of cash remittances are coursed from the United States, Saudi Arabia, the United Arab Emirates, the United Kingdom, Singapore, Japan, and Hong Kong.
Likewise according to the same published report, the Bangko Sentral ng Pilipinas reveals that in April 2014, the gross non-performing loans of universal and commercial banks inched to P94.42 billion, higher than the P93.32 billion in March 2014 but lower than the P100.61 billion in April 2013. Total loan portfolio, on the other hand, surged by 19.2% year-on-year to P4.37 trillion. Consequently, the NPL ratio declined to 2.16%, down from 2.74% posted a year ago. NPL levels across sectors remained low.
Per IDEA, debt payments by the government slightly fell in May 2014 to P29.44 billion from P29.53 billion a year ago. Interest payments accounted for P23.59 billion while principal payments accounted for the rest. Meanwhile, the Bureau of Internal Revenue missed its target collections for June 2014, bringing the first half tally of the year to P643.21 billion, short of the P711.18 billion goal. The BIR attributes this to the slowdown in government spending and business activities.
Moreover, the Philippine balance of payments swung to a deficit of $24 million in June 2014, following a $373 million surplus in May. BSP’s Diwa Guinigundo pins the widening deficit to the tapering of the United States’ quantitative easing and assures that the country’s current account remains strong. The year-to-date BoP now stands at a deficit of $4.144 billion.
Furthermore, the minutes of the Monetary Board’s meeting last June 19 indicate a strong growth outlook for the Philippine economy on the back of solid consumer spending, brisk vehicle and electricity sales, steady manufacturing activity, exports and typhoon-related rehabilitation efforts. Inflation will be closely monitored.
Lastly according to the researchers of IDEA, typhoon Glenda left in its wake toppled electricity power lines, destroyed agricultural crops, damaged public and private properties, and nearly a hundred lives lost as it wreaked havoc across the country. Financial markets and government agencies, along with transport services were also forced to halt their operations during that week.
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