Remittances soar to $16B in January to August-A A +A
Wednesday, October 16, 2013
PERSONAL remittances from overseas Filipinos (OFs) continued to grow in August exceeding the $2 billion mark for the fifth consecutive month this year, the central bank said Wednesday.
Bangko Sentral ng Pilipinas (BSP) Officer-In-Charge Diwa Guinigundo said that personal remittances rose by 7.4 percent year-on-year to $2.1 billion in August.
For the first eight months to August, the money sent home from OFs posted a growth of 6.6 percent from the year-ago level to reach $16 billion.
"Growth in remittances was sustained by the 5.5 percent growth in transfers from land-based OF workers with work contracts of one year or more, whose remittances comprised more than three-fourths (75.3 percent) of the total," Guinigundo said.
Meanwhile, remittance flows from sea-based workers and land-based workers with short-term contracts grew by 7.4 percent.
Cash remittances from OFs coursed through banks increased by 6.8 percent to $1.9 billion in August.
From January to August of 2013, cash remittances reached $14.5 billion or a 5.9 percent increase compared to the level registered in the same period last year.
A sustained influx of remittances was observed from both land-based (US$11.1 billion) and sea-based workers (US$3.4 billion) which grew by 5.5 percent and 7.4 percent, respectively.
The United States, Saudi Arabia, the United Kingdom, the United Arab Emirates, Singapore, Canada, and Japan were the major sources of cash remittances during the period, Guinigundo said.
"The steady deployment of OF workers remained one of the key drivers of the growth in remittance flows," he said.
Citing the preliminary data from the Philippine Overseas Employment Administration (POEA), he said that in January to August this year, approved job orders totaled 542,367, of which about 39 percent were processed job orders mainly for services, production, professional, technical, and related workers.
The job orders were primarily intended for the manpower requirements in Saudi Arabia, the United Arab Emirates, Kuwait, Taiwan, Hong Kong, and Qatar.
The POEA also reported that workers with processed contracts reached 1,164,390 for the first semester of 2013.
Likewise, the continued expansion of bank and non-bank service providers’ international market coverage through tie-ups and establishment of remittance centers abroad to capture a larger share of the global remittance market provided support to the sustained flow of remittances, the BSP official said. (SDR/Sunnex)