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MANILA, Philippines -- The Bangko Sentral ng Pilipinas (BSP) is confident of hitting its remittance growth forecast for the year amid forecasts that the economic slowdown in Europe and the US will linger.
"I think the diversification that has taken place in the OFW industry, in terms of skills and destinations, these make remittances resilient to downturns in certain parts of the world," BSP Governor Amando Tetangco Jr. said.
Experts attending the just-concluded 45th Annual Meeting of the Asian Development Bank Board of Governors were in near-consensus that the economic recovery of the Europe and America will be delayed.
Jeffrey Sachs, development expert and Columbia University professor, told participants of the ADB meeting that Asian economies should find new markets for growth.
Tetangco said remittances, which fuel domestic consumer spending, is still on track to hit "more than five percent growth this year."
In 2011, remittances grew 7.2 percent to a record $20.12 billion, accounting for over a tenth of the country's total economic output.
"The major source of GDP growth is personal consumption. It is basically domestic demand, so it's not just exports," Tetangco said.
An indicator of economic performance, GDP is the total amount of final goods and services produced in the country.
The most recent BSP data showed remittances rose nearly six percent to $1.6 billion last February.
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