Remittance growth flat in January, BSP reports

MANILA, Philippines - Money sent home by Filipinos working abroad decelerated in January with sea-based workers keeping remittances afloat amid global economic slowdown that has displaced some land-based workers in the United States. Remittances managed to grow by 0.1 percent year-on-year to $1.27 billion from $1.26 billion “despite the challenging external environment," Bangko Sentral ng Pilipinas Governor Amando M. Tetangco, Jr. said. However, this growth was slower than the 15 percent posted in 2007 from $1.1 billion in 2006. For January this year, major sources of remittances were the US, Saudi Arabia, Canada, Singapore, Japan, UK, Italy, and United Arab Emirates. However, remittances fell 10 percent month-on-month from $1.41 billion in December 2008. “The slowdown in deployment beginning November 2008 [and the subsequent contraction in December by 5.8 percent], and the reported displacement of some land-based Filipino workers (OFWs) in some countries due to the global economic downturn contributed to the very modest increase in remittances in January," said the statement issued by the BSP. Latest remittance data "provided some optimism for stability if not a pick-up" in remittances next month as more Filipino workers are expected to send money home. More than a quarter of overseas workers were deployed in January to 165,737 from 132,285 a year ago, preliminary data from the Philippine Overseas Employment Administration (POEA) indicated. The BSP also remains bullish about hiring agreements forged by the government with Canada, Australia, Japan and in selected Middle-East countries like Qatar, specifically in healthcare, education, power/energy, and real estate sectors. Labor teams in crisis-affected host countries like South Korea, Taiwan, and the United Arab Emirates (Dubai) have also been sent by the government to help displaced Filipino migrant workers find alternative jobs within the same country or in the region of employment. "The labor teams also aim to tap other work opportunities for displaced workers by profiling their skills for possible job matching and referral to other companies in the host countries," the statement read. - GMANews.TV