Source: PDI
MANILA, Philippines—The Bangko Sentral ng Pilipinas hinted Monday that it might slash its remittance growth forecast of 8 percent for this year to take into account the impact of recent external developments—the unrest in the Middle East and North Africa and the disaster that hit Japan last week—on the ability of Filipino workers abroad to send money.
BSP Governor Amando Tetangco Jr. said the central bank would review its projections on remittances, which could also result in the adjustment of the monetary authority’s forecast on the balance of payments. The central bank set its BOP forecast for this year at a surplus of between $6 billion and $8 billion.
“We will consider all the data indicators that we have on both current and future trends as we scan the operating environment,” Tetangco told reporters.
BSP officials earlier said money sent by overseas Filipinos was likely to sustain the 8-percent growth posted last year given improvements in the global economy.
For instance, the US economy, which rebounded moderately last year from the recession in 2009, was seen to continue recovering this year and at a more significant pace. Continually growing economies of alternative labor markets have also been boosting demand for Filipino labor.
However, the unexpected spate of political unrest in some North African and Middle Eastern countries that started last month was feared to dampen remittances as many OFWs [overseas Filipino workers] based in countries in those regions have left their jobs.
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MANILA, Philippines—The Bangko Sentral ng Pilipinas hinted Monday that it might slash its remittance growth forecast of 8 percent for this year to take into account the impact of recent external developments—the unrest in the Middle East and North Africa and the disaster that hit Japan last week—on the ability of Filipino workers abroad to send money.
BSP Governor Amando Tetangco Jr. said the central bank would review its projections on remittances, which could also result in the adjustment of the monetary authority’s forecast on the balance of payments. The central bank set its BOP forecast for this year at a surplus of between $6 billion and $8 billion.
“We will consider all the data indicators that we have on both current and future trends as we scan the operating environment,” Tetangco told reporters.
BSP officials earlier said money sent by overseas Filipinos was likely to sustain the 8-percent growth posted last year given improvements in the global economy.
For instance, the US economy, which rebounded moderately last year from the recession in 2009, was seen to continue recovering this year and at a more significant pace. Continually growing economies of alternative labor markets have also been boosting demand for Filipino labor.
However, the unexpected spate of political unrest in some North African and Middle Eastern countries that started last month was feared to dampen remittances as many OFWs [overseas Filipino workers] based in countries in those regions have left their jobs.
