REMITTANCES from overseas Filipino workers (OFWs) continued to strengthen the economic growth of the country, a financial expert said.
With this, Wick Veloso, Hongkong and Shanghai Banking Corp. (HSBC) Limited-Philippines treasurer and global markets head, said the country will continue to see signs of development with more investments coming in.
In the next few years, the peso is expected to appreciate and could rise to about P40 against the US dollar.
Because of this, HSBC, among the other banks, offered enhanced services like money transfer.
“It is expected that more than 90 percent of OFW cash remittances will be coursed through the banks this year. This compares favorably to 2001, when it was estimated that only about 72 percent of cash remittances passed through the banks,” the Bangko Sentral ng Pilipinas said in its press statement.
An increase in remittances also showed a growth in the sale of the real estate, it said.
Veloso said, aside from the OFW remittances, the mining industry and the rise of the business process outsourcing industry also acted as engines for the economic growth, which is luring more foreign investors into the country.
Appreciation
Because of this, Aditya Sapru, HSBC senior vice-president, projected a better economy in 10 to 15 years, with the country’s standing.
Though the peso appreciation against the dollar is “good for the economy,” Veloso said the country should watch out for the developments in the United States economy.
Interventions
However, she believes the government is looking at interventions to protect industries, and President Arroyo’s economic team is trying its best to lower the deficit.
Veloso believes Arroyo and her economic team will use her remaining three years in power to help protect the Philippines from economic downfall in order to leave a “good economic legacy.” (TEP)
