Yearly remittances up 14%

Canada features as a "major source" of remittances in a new report from the Philippine central bank released this week.

Filipinos working overseas sent home $16.4 billion in 2008 - 13.7 percent more than in the previous year - despite the global economic downturn.

The figure, which comprises 10.4 per cent of the country’s gross domestic product, surpassed the bank’s forecast of a 13 per cent rise to US$16.3 billion.

Nearly 10 per cent of the country’s 90 million people work overseas, and the money they send home is a key contributor to the Philippine economy.

Central Bank Gov. Amando Tetangco credited the better-than-expected performance to sustained demand for Filipino workers worldwide - particularly professional and skilled workers - and greater access to expanded remittance facilities in countries like Canada.

"Amidst the challenges posed by the global financial market strains and the economic downturn experienced by host economies, remittances from overseas Filipinos remain a dependable source of foreign exchange for the economy," Tetangco said in a statement to the Associated Press.

He said there is reason for optimism that remittances will remain strong despite expectations the number of workers sent abroad could contract in the coming months.

The Philippine Overseas Employment Administration, he said, has reported that demand for Filipinos could remain strong in Canada, Bulgaria, Australia, the United Arab Emirates and Qatar.

A hiring program for Filipino nurses and caregivers in Japan under a bilateral agreement will also start by late April or early May, and Filipino workers could benefit from the rapid expansion of New Zealand’s dairy industry amid higher milk prices, Tetangco added.

A recent raft of comprehensive labour agreements strengthening ties between The Philippines and Western Canada are also expected to contribute to a continuing labour migration.

In 2008, the major sources of remittances were the U.S., Saudi Arabia, Canada, U.K., Italy, United Arab Emirates, Japan, Singapore and Hong Kong.