Philippines, Third Largest Remittance Market
Received US$28 Billion in Remittance in 2014
The Philippines is still among the largest recipient of foreign remittances, according to the World Bank. The Philippines received a total of US$28 billion in remittances in 2014, preceded only by India, which received US$70 billion, and China, which received US$64 billion.
“Total remittances in 2014 reached US$583 billion. This is more than double the (Official Development Assistance (ODA) in the world,” stated Kaushik Basu, World Bank Chief Economist and Senior Vice President. “With new thinking these mega flows can be leveraged to finance development and infrastructure projects,” Basu added.
East Asia and Pacific Region Remittance Market
Remittances to the East Asia and Pacific (EAP) region increased by approximately 7.6 percent to US$122 billion, faster than in any other region in 2014, excluding the MENA region. Remittance streams to the EAP region are projected to increase by 2.8 percent in 2015, to US$125 billion. The outlook for remittance markets in the region remains favorable, as more workers continue to go abroad. Remittances are expected to increase to US$130 billion in 2016 and US$135 billion in 2017.
8.5 Percent of the Country’s Gross Domestic Product
Although China and the Philippines are EAP’s top remittance recipients, smaller Pacific islands are the most dependent on remittances, stated the World Bank. Remittances to countries in the smaller Pacific island account for more than 20 percent of their gross domestic product. Remittances sent to the Philippines made up 8.5 percent of the country’s gross domestic product (GDP) in 2014.
Recent data from Bangko Sentral ng Pilipinas indicated that the Philippines received a total of US$2.1 billion in February 2015. Total remittances to the Philippines for the first two months of the current year had already reached US4.1 billion.
Filipinos who migrated to the United States, Middle East, Australia, and other Asian countries are among the top senders of remittances to the Philippines.