Remittances seen growing 7%

MANILA, Philippines - Remittances from Filipinos abroad could grow as much as seven percent this year over 2013 levels, according to the research arm of the Metropolitan Bank and Trust Co.

“Expect remittances to end on a strong note given the holiday season and as the weak peso support purchasing power of recipients,” Mabellene Reynaldo, research analyst at Metrobank, said.

Metrobank research has forecast remittances to increase by six to seven percent this year.

“Despite the uneven outlook for global growth, remittances are likely to remain robust as demand for Filipino manpower continues to be strong,” Reynaldo said.

Latest central bank data showed cash remittances surged seven percent to $2.224 billion in October from $2.079 billion in the same month last year. This brought the 10-month tally to $19.869 billion, up 6.2 percent from year-ago levels.

The Bangko Sentral ng Pilipinas cited the sustained demand for Filipinos abroad as the main driver for growth in remittances.

Citing data from the Philippine Overseas Employment Administration, the central bank noted job orders reached 768,741 as of October. More than a third of these were meant for service, production, and professional, technical, and related workers in Saudi Arabia, the United Arab Emirates, Kuwait, Taiwan, and Qatar.

Meanwhile, the central bank also commended the efforts of local banks to expand remittance services abroad which help Filipinos send home money easily.

Remittances provide a big boost to the country’s economy as this mainly supports domestic consumption.

In 2013, remittances amounted to $22.968 billion and made up more than eight percent of the country’s gross domestic product.