Country Report Philippines June 2011

Economic performance: Remittance growth slows as fewer find jobs abroad

Remittances from overseas workers totalled US$1.6bn in April, a rise of 4.1% year on year, representing the slowest pace of growth since August 2009, according to the BSP. During the first three months of the year remittances were up by 5.9%, at US$4.6bn. The political upheaval besetting the Middle East and North Africa at present has raised concerns that growth in remittance receipts is set to slow this year after accelerating to 8.2% in 2010. Of the US$18.8bn in remittances received by the Philippines in 2010, 14.2% came from countries in the Middle East, making it the most important region after the Americas and Europe. There are also signs that fewer Filipinos are finding employment overseas. According to the Philippine Overseas Employment Administration, the number of workers leaving to work abroad fell to 380,188 in the first three months of 2011, from 395,195 in the year-earlier period, mainly owing to temporary bans imposed on travel to conflict-hit countries. In mid-April the government revised down its forecast for growth in remittances this year to 7%, from 8% previously.

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