Remittance growth beats govt projection in 2013 —Bangko Sentral

Monthly remittances from Filipinos living and working overseas hit a fresh record in December, bolstering the full-year number to grow beyond government estimates. 

 

In a statement Monday, the Bangko Sentral ng Pilipinas said cash remittance—money sent through banks and transfer agents—grew at an annual rate of 9.1 percent to $2.155 billion in December last year, the highest monthly level to date. 

 

The growth rate was also fastest since 9.7 percent was recorded in December 2012. 

 

For the whole year 2013, meanwhile, cash remittances grew 6.4 percent to $22.760 billion, exceeding central bank projection of 5 percent for the year. 

 

The major sources of cash transfers in December were the United States, Saudi Arabia, the United Kingdom, the United Arab Emirates, Singapore, Canada, and Japan. 

 

“Solid growth” of remittances continued to provide backbone to the Philippine economy and accounted for 8.4 percent of the country's gross domestic product last year, the central bank said. 

 

Bangko Sentral noted that “strong demand for skilled Filipino manpower abroad, particularly in the Middle East,” boosted remittances last year. 

 

Demand for overseas Filipino workers was “underpinned by continued recovery in developed nations,” University of Asia and the Pacific School of Economics dean Peter U told GMA News Online in a phone interview. 

 

Approved orders for services, production and technical jobs overseas totaled 793,415 in 2013, preliminary data from the Philippine Overseas Employment Administration showed. 

 

Increasing numbers of remittance centers here and overseas also propped up cash transfers, said the Bangko Sentral. 

 

U also surmised that higher value of transfers from overseas relatives of victims of Typhoon Yolanda—the strongest typhoon to hit land on record—added to the monthly remittance number. 

 

For this year, U said remittance may continue growing over 5 percent amid recovery in the global economy. This, he noted, will keep the Philippine economy afloat. 

 

“That's always been the case,” he said. “It's not gonna change anytime soon.”

 

Meanwhile, personal remittances—which include transfers in cash and in kind through banks and hand-carried deliveries—hit $2.386 billion in December, up 12.5 percent year-on-year.

 

Personal remittances in full-year 2013 grew by 7.6 percent to $25.124 billion. —KG, GMA News