Remittances from overseas Filipino workers (OFWs) will remain a vital driver of the Philippines’ economic growth, boosting consumption and bolstering the country’s resilience, according to HSBC.
OFWs are considered one of the Philippines’ strongest “exports,” providing services and labor globally. The income they earn abroad is often higher than what they could earn domestically, and a significant portion of these earnings is sent back to support their families.
These remittances have consistently contributed around 20% to the country’s current account receipts and approximately 9% to its GDP since 2006. While there has been a slowdown in the growth of OFW remittances, primarily due to a decline in the number of Filipinos working abroad, the trend has been accelerated by the pandemic.
Many OFWs are choosing to return to the Philippines or immigrate to the countries where they work, drawn by increasing opportunities and solid economic growth in their homeland.
Skilled workers in services, sales, crafts, and construction have been among those returning, attracted by the booming construction sector and the robust service industry in the Philippines.
Source: PhilNews24 | November 28, 2023
