OFW inflows seen to hit $16.2B in 2008

The Bangko Sentral ng Pilipinas (BSP) expects total remittances from overseas Filipino workers (OFWs) to reach $16.2 billion in 2008 with labor deployment increasing despite the slowdown in the US economy.

BSP Governor Amando Tetangco Jr. told reporters over the weekend that gross OFW inflows would expand by eight percent next year, including remittances that go through informal and non-bank channels.

Remittances that go through banks, on the other hand, are projected to grow at a faster rate of 10% to reach $15.7 billion compared to only $14 billion this year.

According to Tetangco, the latest estimates of the BSP also upgraded the full-year projection for 2007 when OFW remittances are expected to increase faster by seven percent.

Labor deployment, however, has been criticized by economist as a "cop-out" as the Arroyo administration opted to train workers for off-shore employment rather than working to create higher-paying local job.

Classified by type of worker, the number of deployed land-based workers rose by 10.7% to 64,066 in October, while the number of deployed sea-based workers contracted by 10.7% to 23,992.

Sea-based workers according to POEA, declined due to delays in the workers' visa issued by host countries and increasing competition from workers from other countries. "Nonetheless, the increase in the deployment of land-based workers in October moderated the year-to-date contraction to only 1.1 percent to reach 915,333.

aticle from The Philippine STAR by Mynardo Macaraig