Full-year growth exceeds BSP forecast of 4%

MANILA, Philippines - Money sent home by overseas Filipinos grew 5.6% last year, stronger than what the Bangko Sentral ng Pilipinas (BSP) expected.

Data from the BSP showed that remittances reached a record $1.6 billion in December, an 11.4% growth from the same month in 2008. This was the highest growth recorded for 2009 and the highest year-on-year expansion since October 2008.

The December figure brought the country's total remittance inflows for 2009 to $17.3 billion, exceeding the BSP's forecast of $17.1 billion or a 4% growth for the year. For 2010, the BSP is looking at a 6% growth.

During 2009, the BSP said the country's major sources of remittances were the United States, Canada, Saudi Arabia, United Kingdom, Japan, Singapore, United Arab Emirates, Italy, and Germany.

Growth drivers

The BSP attributed the steady growth in remittances to the continued deployment of skilled Filipino workers and increased access of OFWs and their families to formal money transfer channels.

Specifically, the bank said there was high demand for engineers, medical practitioners, and teachers in 2009.

"The geographical diversification of OFWs has also contributed to the resilience of remittance flows. Since not all host countries were severely affected by the global financial crisis, Middle East countries continue to absorb a significant number of deployed OFWs, including those that have been displaced elsewhere," the BSP said in a statement released Monday.

It must also be noted that there were higher money transfers since October as OFWs supported the rebuilding efforts of families whose properties were damaged by recent typhoons.

Historically, OFWs send more money to their loved ones when they need it the most. For instance, inflows are usually more robust in June as family members need tuition fees and other supplies for school.