RemittancesGateway.org

January remittance growth likely to top 6%, says BSP chief

Saturday, 13 March 2010 10:23

Source: BusinessWorld online

JANUARY REMITTANCE growth likely topped the full-year forecast as demand for skilled workers has risen in line with a global economic rebound, the Bangko Sentral ng Pilipinas (BSP) chief said on Friday.

"This year we are projecting 6% [growth] for the whole year, but [based on] the initial data I have seen it looks like the figure for January could be in excess of the projection for the year," central bank Governor Amando M. Tetangco, Jr. told reporters at the sidelines of a Chamber of Thrift Bank forum on Friday.

Official remittance figures for the month will be released on Monday.

The amount of money sent home by migrant Filipinos barely moved in January last year. Remittances were up by only 0.1% to $1.26 billion and officials pointed to the global downturn as a factor. Overall, however, full-year remittances grew by 5.6% to $17.1 billion, exceeding the BSP’s projection of a 4% expansion.

On Friday, Mr. Tetangco said: "We continue to experience demand for ... skilled workers like engineers, medical practitioners, teachers ... these workers are paid higher so they are able to remit more."

The BSP chief added that local banks have also been more aggressive in opening remittance centers abroad and tying up with foreign partners, which is why a larger volume of overseas Filipino worker money is being coursed through formal channels.