ADB economist sees strong remittance growth in region

MANILA, Philippines - The Asian Development Bank (ADB) said the growth of remittances in the region would remain strong despite the economic woes in Europe.

ADB chief economist Changyong Rhee pictured the remittance market of Asia as “robust.”

Rhee explained that in the 2008 crisis, the Asian market was heavily affected as a lot of deployments were centered on Europe and the United States.

But since then, the Middle East, African and Asian markets have likewise increased productive activities and absorbed a considerable share of migrant workers.

“Remittances can likewise be shielded from the disturbed economies in Europe and the US by increasing inter-regional trade and economic growth, and strong linkages (between the production chain of Asian-based companies),” the ADB chief economist added.

Likewise, inter-regional trade and people flow increase the prospects of migrant employment.

In 2010, worldwide remittance ?ows were estimated to have exceeded $440 billion. From that amount, developing countries received $325 billion, which represents an increase of six percent from the 2009 level.

The true size, including unrecorded ?ows through formal and informal channels, is believed to be larger.

Recorded international money transfers in 2009 were nearly three times the amount of of?cial aid, and almost as large as foreign direct investment (FDI) ?ows to developing countries.

The top recipient countries of recorded remittances were India, China, Mexico, the Philippines and France.

Also in 2010, the leading migrant destination country is the United States, followed by the Russian Federation, Germany, Saudi Arabia and Canada.

Remittances from overseas Filipinos workers (OFW) coursed through banks for 2011 expanded 7.2 percent to $20.1 billion, from $18.9 billion in 2010.

For 2011, the major sources of remittances were the US, Canada, Saudi Arabia, the United Kingdom, Japan, United Arab Emirates, Singapore, Italy, Germany and Norway.

The ADB has forecast that remittances from overseas Filipinos would grow by at least five percent this year, from the 7.2-percent growth rate last year. It added that strong money transfers from migrant Filipinos was the principal fuel for strong private consumption.