MANILA BULLETIN - March 30, 2010

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Moody’s forecasts higher OFW remittances

Money sent home by overseas Filipino workers (OFWs) to grow by 8 percent this year, higher than the Bangko Sentral ng Pilipinas' (BSP) forecast of 6 percent, Moody's Investors Service said.

The higher than expected growth in remittances, Moody's said can be attributed to shift in the composition of OFWs towards higher skilled and higher paid occupations, such as those in the healthcare industry.

The shift from lower-wage occupations like those in construction, the credit rating firm said is one of the reasons for the resilience in remittances during the crisis last year.

“Such positions [in the healthcare industry] typically feature greater job security than lower-wage occupations,” Moody's said.

OFW remittances defied expectations at the onset of the crisis of a large fall by recording full-year growth of 5.6 percent last year.