Will remittances fall?

Will remittances fall?
By Cielito Habito
Philippine Daily Inquirer


IF THE PHILIPPINE ECONOMY HAS SO FAR weathered the impact of the global financial crisis better than most of its neighbors, it’s because of one unique element: Massive remittances from millions of overseas Filipino workers (OFWs). The country is now the third largest recipient of remittances in the world, behind India and Mexico. The Bangko Sentral ng Pilipinas reports that overseas Filipinos sent back $16.4 billion of remittances last year, growing 13.7 percent over the 2007 level even with the global economic slowdown. This surprising continued double-digit growth propelled Filipinos’ consumption spending (and some investment spending as well) enough to offset the drop in our export sales and thereby helped keep our economy growing.