OFW remittances in 2010 may reach over $18 billion

The money sent home by overseas Filipinos workers (OFWs) may expand by 8 percent this year, the Bangko Sentral ng Pilipinas said over the weekend. “We hope we can sustain the 8-percent growth in remittances given that the global economy is showing some recovery, even if very fragile," said BSP deputy governor Diwa Guinigundo. He said the remittance volume this year could reach $18.735 billion. Last year, remittance amounted to $17.348 billion, according to BSP data. Guinigundo said the continued resiliency of remittances can be attributed not only on the global economic recovery but also to the differentiated skills and the diverse markets open to millions of overseas Filipino workers. As of July, OFW remittance level already totaled $10.679 billion or grew at the rate of 7.1 percent in the first seven months alone, Guinigundo noted. “I think the markets are convinced the macro-economy is in very good shape. Also, there is a greater degree of optimism as shown by the latest results of the consumer confidence survey, which remains negative but has showed a large rebound," Guinigundo said. This refers to the diminished number of pessimists among consumers responding to the survey the BSP conducted recently in which the consumption index improved to -14 percent from -28.7 percent three months earlier. The sharply improved consumer mood is backed by the robust gross domestic product growth of the country that accelerated to 7.9 percent, the BSP survey noted. - Jesse Edep/KBK, GMANews.TV