OFW money to grow slower next year – BSP

The money sent home by overseas Filipino workers will grow at a slower pace of 7 percent next year from 8 percent this year, the Bangko Sentral ng Pilipinas said over the weekend. This would translate to $21.1 billion next year from an estimated $20.26 billion this year, said Bangko Sentral Deputy Gov. Nestor Espenilla Jr. The deputy governor was referring to the latest assumptions on foreign exchange inflows adopted by the country’s economic managers. The assumptions came in the wake of adjustments that lowered the forecast on the gross domestic product to 5 percent from 7-8 percent. Inflation, on the other hand, has been projected to stay within 4 percent, plus or minus one percentage point this year and next, with exports likely to grow 9-10 percent this year and 12 percent for 2012. Imports, on the other hand, will likely grow 18 percent this year and maintain that pace next year. Espenilla said the assumptions took into consideration a P25 daily wage increase. “The P25 per day wage hike was already imputed. Anything higher we will have to assess as the economy has many variables," he said. On the external events, the deputy governor said the political troubles in the Middle East and North Africa and the problems of Japan, in the wake of the devastations it suffered from the March 11 earthquake and tsunami and the damage of several nuclear reactors of the Fukushima power plant, were seen as events being contained. — VS, GMA News