Ayala-led Bank of the Philippine Islands (BPI) expects the growth of money sent home by Filipinos through its 19 remittance centers abroad to slow this year.
The bank, which recently opened its newest branch in Madrid, Spain, expects remittances to grow by 11 percent to $5 billion this year. Last year, remittances went up faster at 15 percent to $4.5 billion despite slower inflows from the US.
BPI Senior Vice-President Teresita Tan said three-quarters of the remittances had come from land-based workers, and the balance from seamen.
"There was a slowdown of remittances from the US but it remains large in terms of volume," she told reporters.
The growth in money sent home by Filipinos in the Middle East, Europe and other Asian countries was steady.
According to a central bank ranking, BPI had the second biggest remittance volume in 2008, with a 23-percent market share.
The central bank expects remittances to grow by 6 percent this year after actual growth exceeded the target last year.
Data showed remittances coursed through banks rose by 5.6 percent to $17.3 billion last year — better than the 4-percent goal — due to sustained demand for Filipino workers abroad.
The remittance level accounted for about a tenth of the country’s economic output, supporting local consumption amid the global economic slump.
The major sources of remittances last year were the US, Canada, Saudi Arabia, Britain, Japan, Singapore, United Arab Emirates, Italy and Germany.
Source: GMA Business News
