Economic crisis:
OFWs: Lifesaver

Basahin ang artikulong ito sa Pilipino

As in previous years, the one thing that currently keeps the Philippine economy afloat are the dollar remittances of overseas Filipino workers (OFW).

In the first three quarters of 2002, OFW remittances reached $5.37 billion (P280 billion), 21.2% higher compared to last year. This, despite the slack in remittances during the months of June, August and September due to wage reductions imposed in Saudi Arabia, Taiwan and Korea. Foreign governments were able to impose wage cuts despite opposition from OFWs after conniving with the Department of Labor and Employment. For the year 2002, the regime expects to squeeze $7.5 billion (P390 billion) from OFWs.

However, the number of Filipinos seeking employment abroad continues to grow due to the lack of job opportunities and the slave wages in the country. A growing number of them are nurses, caregivers, teachers, computer experts, technicians and other professionals and service workers drawn to Europe, America and Asia. From January to August alone, 612,358 Filipinos went abroad, 4% higher compared to last year's figure.

OFW remittances comprise 54% of the country's gross income from abroad. This is one of the main reasons for the existence of a balance of payments surplus of up to $751 million despite the small growth in commodity trading (9.8%) and the 40.9% slump in services trading.

The dollar remittances of OFWs comprise the key factor in the growth of the gross national product (GNP). As a result, the economy posts an almost yearly growth rate despite the contraction of local industry and agriculture. More than 33% or P83 billion of OFW remittances goes to the government's coffers. This constitutes 6.2% of the GNP.

January 2003
English Edition

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