Think-tank sees steady rise in OFW remittances

Filipinos working overseas are expected to send more money home next year as the world recovers from the economic slump, London-based think-tank Capital Economics Ltd. said. In its Emerging Asia Economics Update, the research firm said remittances from Filipinos abroad could rise by 7-9 percent next year from the expected growth of 5 percent this year. “We forecast that remittances will rise [by] 7-9 percent in 2010, after average growth of around five percent this year," said Kevin Grice, Capital Economics senior international economist. The Bangko Sentral ng Pilipinas (BSP) expects remittances, which make up as much as a tenth of the Philippines' economic output, to grow by 4 percent to a record level of $17.1 billion this year and by 6 percent next year. For January to October, remittances went up by 4.5 percent to $14.321 billion. “Worker remittance inflows, although disappointing in October, have also stayed generally strong and should climb more rapidly in November and December ahead of Christmas," Grice said. He also said Philippine economic growth would likely hit the midpoint of 0.8-1.8 percent target set by economic managers. The economy posted a measly 0.7 percent growth from January to September. “For 2009, growth will probably come around the mid-point of the 0.8 percent to 1.8 percent government target range, and we still forecast that gross domestic product growth will accelerate in 2010 to around 4.5 percent," Grice said. The expansion will be supported by low interest rates amid the slow rise in consumer prices. Capital Economics expects inflation at four percent next year, within the BSP target of between 3.5 and 5.5. percent. The peo is expected to strengthen to P44 per dollar from the current level of P46.60. — NPA/GMANews.TV