Q1 remittances climb 5.4% to $4.8B

Money transfers from Filipinos abroad reached $4.842 billion in the first quarter, up by 5.4 percent or $248 million from $4.594 billion a year earlier, the Bangko Sentral ng Pilipinas (BSP) reported Tuesday.

 

“Robust cash transfers in the first quarter of 2012 were supported by the sustained demand for Filipino manpower in various labor markets,” said BSP Governor Amando Tetangco Jr.

 

Remittances from land-based Filipino workers rose by 2.7 percent to $3.7 billion and from sea-based workers by 15.3 percent to $1.1 billion, Bangko Sentral data showed.

 

The bulk of remittances came from the US, Canada, Saudi Arabia, the United Kingdom, United Arab Emirates, Germany, Italy, and Hong Kong.

 

In February alone, the Tetangco noted remittances rose 5 percent to $1.697 billion from $1.616 billion a year earlier.

 

Philippine Overseas Employment Administration (POEA) data showed total job orders process in the first four months of 2012 stood at 68,711. These were the requirements from Saudi Arabia, UAE, Qatar, Kuwait, Hong Kong, Taiwan, and Singapore.

 

Helping increase remittances were the strategic network of bank and non-bank service providers across the globe and new financial products and money transfer services offered in the market, according to the central bank.

 

“Increased inflows of overseas Filipinos’ remittances were made possible by the continued expansion of bank’s presence across the globe through tie-ups established by local financial institutions with foreign and local money transfer operators, mobile phone service operators and pawnshops,” said Tetangco.

 

Money transfers went up 7.2 percent to a new record high of $20.117 billion last year from $18.763 billion in 2010.

 

The Bangko Sentral earlier said remittances may grow at a slower pace of 5 percent this year. 

 

Remittances give the country a stronger external payments position, and serve to a blunt the impact of global shocks.

 

Because of its external payments position, the Philippines has so far received five upgrades from credit rating agencies since President Benigno Aquino III assumed office in June of 2010.

 

London-based Fitch ratings lifted the country's sovereign credit a notch under investment grade. New York-based Moody's Investor Service and Standard & Poor’s rated Philippine sovereign credit two notches below investment grade.

 

Higher remittances from Filipinos abroad also grow private consumption, which accounts for about 70 percent of gross domestic product. —VS, GMA News