Remittances: Good for the Philippine Economy

Philippines is the 3rd largest country receiving remittances from Filipinos working in countries like Australia, New Zealand, Singapore, Hong Kong , USA and Unite Kingdom.  Banko Sentral ng Pilipinas reported that there has been around USD$5.5 billion cash remittance just on the first quarter of 2014.   With over 10 million Filipinos working overseas, it is not a surprising number.   Being a 3rd world country where resources and government support is almost none existent, most enterprising Filipinos leave the Philippines to find better earning opportunity overseas and most importantly to be able to help.   The Philippine culture has a very tight and interdependent family structure. Cousins are recognized up to the 5th degree.  Children are taught to “give”, to “share”, and being able to provide “help” is one of the most revered values.  Kuya’s and Ate’s send their siblings to school if not the uncle and aunties.   Filipinos are hired and valued for various of roles from Domestic Worker jobs to IT Roles to hospital nurses. Hong Kong has over 140,000 Domestic Helpers. Australia, Singapore and USA have uncounted number of white collar Filipino professional migrants.  
Pinoy Professionals 300x263 Remittances: Good for the Philippine Economy

OFW is Overseas Filipino Workers image source from www.thewiseliving.com

      When Filipinos work overseas, most of the time, their families are left in the Philippines. Sometimes, the biggest reason they leave are their families. Filipinos leave the Philippines with a goal to send their children or siblings to school and to save up to eventually go back home someday.   Most Filipinos sends money for basic day to day living expenses of their families in the Philippines. The pesos received stimulates the economy as it increases consumption, production and economic activity.  This is good for the country and is probably helping in its current economic growth.   Another top and important reason of sending money back home is for education. Filipinos overseas are supporting the education industry in the Philippines. This starts a good cycle of educated new generation of Pinoys that can support and be employed in a stronger Philippine economy.   And lastly, remittances received provides a good “cushion” to the Philippine economy, as come high and low , whatever happens,  remittances from around the world are consistently  being sent to the Philippines.        
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