VILLAR: OFW REMITTANCES WILL STILL PROP ECONOMY IN 2007
Number of Filipino families living on OFW remittances to further increase

Senate President Manny Villar, says that as in previous years, dollar remittances of overseas Filipino workers (OFWs) would still keep the countrys economy afloat this year.

Remittances from OFWs last year exceeded targets. It was reported that it reached $12 billion, way above earlier forecast of around $10.3 billion. This upward trend will likely continue this year, so Pinoy overseas will again be the saving grace of the Philippine economy, cites Villar.

Villar further cites, There is no denying that OFWs are not only major players or contributors to the countrys economy. They have also, over the years, altered the social landscape in our country. Filipino families living on remittances of their relatives abroad continue to increase.

Based on data from the National Statistics Office (NSO), from 775,000 families in 1991, the number of families relying on money from abroad as main source of income has increased to 1.3 million in 2003, representing a 69% growth rate. Eight percent of Filipino families survive on OFW remittances.

Other sectors though say that the countrys reliance on OFW remittances will not be healthy for the economy. Likewise, it was pointed out by a labor expert that even the OFWs families who receive money tend indulge themselves and spend the OFWs hard-earned money on luxury items.

Villar on the other hand, who strongly promotes the entrepreneurial spirit through the Sipag at Tiyaga philosophy that he advocates, urges OFWs and their families to invest their hard-earned money in the country since it was estimated that 20 to 30 per cent of OFW income is not remitted here.

Nonetheless, according to Villar, through their remittances and investments, OFWs are already a major contributor to the local economy. In fact, OFW remittances account for around 1/12th of the countrys gross national product (GNP). Remittances contribute to consumer spending, which accounts for around 70 per cent of the GDP.

OFWs continue to do our country a huge favor through their dollar remittances, which continue to be the saving grace of our economy. If not for their remittances, our economy would be adversely affected, adds Villar.