In a report, HSBC economist Trinh Nguyen said the growth of remittances from OFWs would slow down to about five percent this year from 6.9% last year.
“History shows that the country’s output is not completely immune to global headwinds, so remittances growth will likely decelerate in 2012,” Nguyen stressed.
Despite the expected slowdown, the economist said the amount of money sent home by about 8.5 million Filipinos overseas would continue to support private consumption.
“At home, steady remittance flows should support consumption, if at a slower pace than before,” she explained.
Latest data from the Bangko Sentral ng Pilipinas (BSP) showed that OFW remittances posted a double-digit growth of 10.6 percent to hit a new monthly record of $1.783 billion in November last year from $1.612 billion a year ago.
For the first 11 months of last year, the BSP said remittances went up by 7.3 percent to $18.317 billion from $17.068 billion in the same period in 2010. Major sources of remittances include the U.S., Canada, Saudi Arabia, United Kingdom, Japan, United Arab Emirates, Singapore, Italy, Germany, and Norway.
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