Remittances surpass 2014 govt growth estimates – Bangko Sentral

Cash remittances from overseas Filipinos hit a fresh record in December, pushing the full-year growth numbers beyond government estimates. 

 

In a statement Monday, the Bangko Sentral ng Pilipinas said cash remittances or money sent through banks and transfer agents expanded by 6.6 percent to $2.3 billion in December last year, the highest monthly level to date. 

 

For the whole of 2014, cash remittances grew by 5.8 percent to $24.3 billion, exceeding central bank projection of 5 percent. 

 

Bangko Sentral earlier projected remittances to grow by 5.5 percent in 2014.

 

Remittances continued to support the Philippine economy, the central bank said, noting that money transfers accounted for 8.5 percent of the gross domestic product last year. 

 

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

 

The BSP noted that “strong demand for skilled Filipino manpower contributed to the steady growth of remittances. 

 

Approved orders for services, production and technical jobs overseas totaled 878,609 in 2014, preliminary data from the Philippine Overseas Employment Administration showed. 

 

About 43.6 percent of the processed jobs were intended for service, production, and professional, technical and related workers in Saudi Arabia, Kuwait, the United Arab Emirates, Taiwan, and Qatar.

 

Meanwhile, personal remittances – which include transfers in cash and in kind through banks and hand-carried deliveries – hit $2.6 billion in December, up 6.4 percent year-on-year.

 

Personal remittances in full-year 2014 grew by 6.2 percent to $26.9 billion.

 

"The sustained increase in personal remittances was underpinned by the steady rise of remittances from land-based workers with work contracts of one year or more (5.5 percent) as well as sea-based and land-based workers with work contracts of less than one year (6.9 percent)," the central bank noted. – Danessa O. Rivera/VS, GMA News