Filipino workers' remittances up 10.4 percent
MANILA, Philippines — Remittances from millions of Filipinos abroad rose 10.4 percent in August from a year ago, but their growth slowed compared to previous months even as the central bank warned Wednesday the global financial crisis may take a toll on workers.
Remittances — a key contributor to the Philippine economy — reached US$1.3 billion in August, 10.4 percent higher from the same period last year. In July, remittances grew 24.6 percent, the fourth consecutive month of double-digit growth.
Central bank deputy governer Nestor Espenilla Jr. said the global economic slowdown could put some dent on the growth of remittances, particularly in industrialized countries where most of an estimated 8.7 million Filipinos work.
Espenilla said, however, remittances will continue to provide strong support to the economy because demand for Filipino workers has been growing.
He did not provide any reason for the slower growth in August, a month before a dramatic worsening in the US credit crisis was felt around the world.
President Gloria Macapagal Arroyo said she has ordered officials to craft a contingency plan, including a support fund, for Filipino workers who may be displaced by the global economic meltdown.
Nearly 10 percent of the country's 90 million people work overseas. The money they send home is equivalent to about 10 percent of the country's gross domestic product.
Foreign Undersecretary for Migrant Affairs Esteban Conejos said the effects of the financial crisis on workers remain unknown, and there are no immediate indications Filipinos are losing their jobs abroad or demand for them has slowed down.
The Philippine Overseas Employment Administration said as of last December, some 2.8 million or 32 percent of Filipinos working outside the country are in the US, most of them permanent residents.
A large number of Filipino workers are skilled or semi-skilled laborers in construction projects in the Middle East who remain in demand due to the continued building boom in the Gulf countries. Filipino health workers still are desired in the US and other parts of the world, Conejos said.
Most vulnerable, he said, are unskilled workers like domestic helpers — most of whom are deployed in the Middle East, Hong Kong and Singapore. The Philippines deploys about 100,000 domestic helpers abroad yearly.
Preliminary government data showed 884,907 Filipino workers went abroad in the first eight months of the year, up 26.4 percent from the same period last year.
Last year, remittances stood at US$14.45 billion, and the government projected 2008 remittances to hit US$15.7 billion. - AP
Remittances — a key contributor to the Philippine economy — reached US$1.3 billion in August, 10.4 percent higher from the same period last year. In July, remittances grew 24.6 percent, the fourth consecutive month of double-digit growth.
Central bank deputy governer Nestor Espenilla Jr. said the global economic slowdown could put some dent on the growth of remittances, particularly in industrialized countries where most of an estimated 8.7 million Filipinos work.
Espenilla said, however, remittances will continue to provide strong support to the economy because demand for Filipino workers has been growing.
He did not provide any reason for the slower growth in August, a month before a dramatic worsening in the US credit crisis was felt around the world.
President Gloria Macapagal Arroyo said she has ordered officials to craft a contingency plan, including a support fund, for Filipino workers who may be displaced by the global economic meltdown.
Nearly 10 percent of the country's 90 million people work overseas. The money they send home is equivalent to about 10 percent of the country's gross domestic product.
Foreign Undersecretary for Migrant Affairs Esteban Conejos said the effects of the financial crisis on workers remain unknown, and there are no immediate indications Filipinos are losing their jobs abroad or demand for them has slowed down.
The Philippine Overseas Employment Administration said as of last December, some 2.8 million or 32 percent of Filipinos working outside the country are in the US, most of them permanent residents.
A large number of Filipino workers are skilled or semi-skilled laborers in construction projects in the Middle East who remain in demand due to the continued building boom in the Gulf countries. Filipino health workers still are desired in the US and other parts of the world, Conejos said.
Most vulnerable, he said, are unskilled workers like domestic helpers — most of whom are deployed in the Middle East, Hong Kong and Singapore. The Philippines deploys about 100,000 domestic helpers abroad yearly.
Preliminary government data showed 884,907 Filipino workers went abroad in the first eight months of the year, up 26.4 percent from the same period last year.
Last year, remittances stood at US$14.45 billion, and the government projected 2008 remittances to hit US$15.7 billion. - AP
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