Remittance Growth Slowdown: Major Implications

Annual remittance growth from overseas Filipino workers (OFWs) slowed to a five-month low in August, as the ongoing global economic slowdown began bite following two consecutive months of exceptionally strong inflows. With global economic growth set to continue slowing throughout the rest of the year, and well into 2009, it would appear that remittances may have now have reached a peak for the time being. Indeed, central bank deputy governor Nestor Espenilla has said that full-year growth may slide to 15% in 2008, and that this figure would slow to 10% in 2009 as the ongoing global economic slowdown continues to dent remittance growth. However, we fear that these projections may yet prove to be rather optimistic

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