Gov't fails to account for $2.6B OFW remittance

MANILA, Philippines - Money sent home last year by Filipinos working abroad was nearly one-fifth more than the official figures reported by the government, according to a study by a London-based organization.

Instead of receiving $14.45 billion, the Philippines actually got some $17 billion in remittances last year, the research unit of the London-based Economist Magazine said in its July 2008 report.

This indicated that the difference—estimated at $2.6 billion—was sent via unofficial channels, a figure that is five times more than the $500 million estimated by the Bangko Sentral ng Pilipinas (BSP).

Besides friends and relatives of overseas workers, unofficial channels also refer to door-to-door services, which also deliver shipments from abroad—usually consumer goods sent home by Filipinos abroad.

Earlier, the central bank predicted that remittances for this year would reach $16.4 billion.

According to the Economist Intelligence Unit (EIU), the Philippines is the fourth-largest recipient of remittances after India, China, and Mexico, which received $27 billion, $25.7 billion, and $25 billion respectively from their citizens working in foreign countries.

Commissioned by Western Union, the EIU report also confirmed that most of the funds were not invested but spent on consumer goods such as refrigerators and cars.

Bulk of remittances in Bangladesh, Brazil, Mexico, Nicaragua, and El Salvador were spent on food and clothing, the report said. - GMANews.TV

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