The Bangko Sentral ng Pilipinas (BSP) is seeing a stronger inflow of remittances for the last two months of the year, as rehabilitation efforts are ramping up on the aftermath of Super Typhoon Yolanda.
Diwa Guinigundo, deputy governor for BSP’s Monetary Stability Sector, said that a strong inflow of remittances is seen particularly in the areas which were heavily damaged by Yolanda.
“We might see a strong inflow in the areas, because there are also reports indicating that families who were displaced by the super typhoon have members working abroad,” he said.
Gunigundo noted that overseas Filipino workers were expected to increase the original amount of money they send to their families in the Philippines “precisely to cover the extra cost of rehabilitation and rebuilding the homes and the business.”
“Normally, what we would expect is that instead of the normal level of remittances that they send, probably they would increase that,” he said. The BSP official added that the spikes in terms of remittance inflow are expected this month until December to cover the extras cost of rehabilitation.
Latest data from the BSP said that personal remittances from overseas Filipinos continued to grow at a solid pace. Remittances in September rose by 6.8 percent year-on-year to reach $2.1 billion, the sixth consecutive month in 2013 that personal remittances exceeded $2 billion.
Cumulative personal remittances for the nine-month period increased to $18.2 billion, 6.6 percent higher than the level posted during the same period in 2012.
Furthermore, Guinigundo said that higher remittances could provide additional counterweight and therefore provide additional support to the real gross domestic product, which is expected to slow down because of the damages brought by the super typhoon.
Latest report from the National Disaster Risk Reduction and Management Council showed that the damage caused by Yolanda on infrastructure and agriculture has reached P22 billion.