Data Releases & Key Statements during the Month

ING sees a fall in OFW remittances in 2009

According to ING, the Dutch financial giant, the growth of remittances sent by overseas Filipino workers (OFWs) is expected to slow to 3%-4% in 2009, amidst the ongoing slowdown in the global economy. ING economist, Jose Mario Cuyegkeng said “Regression analysis reveals that for every one-percentage-point cut in US growth, Philippine OFW remittance growth is cut by 0.9 percentage point.” The fall in remittances is expected to slow down the economic growth to 3.8%-4.1%.

Global OFW deployment increased to 1.37 million in 2008: DOLE

According to the Department of Labor Employment (DOLE), Philippines, the total deployment of overseas Filipino workers (OFWs) jumped 27.8% to over 1.38 million in 2008 as compared to 1.07 million in 2007. The agency added that about 3,772 documented OFWs were deployed globally on a daily basis in 2008. The increase in deployment of OFWs was largely due to the strong labour demand in countries such as Canada, Bulgaria, Australia, the United Arab Emirates and Qatar.

Bangladesh remittances increase 25.36% in 2008

According to Bangladesh Bank (BB), remittance inflow into Bangladesh has increased by 25.36% to $8.22 billion in 2008, compared to the figure recorded for the previous year. According to the Ministry of Expatriates' Welfare and Overseas Employment, the increase in remittances was largely attributable to an increase in the number of Bangladeshi migrants, which reached 875,000 in 2008 as compared to 832,000 in 2007. Saudi Arabia continued to be the largest source of remittances for Bangladesh with a 29.9% share of the total inward remittances (July-October FY 2009) received by the country. The US was the second largest source with a share of 17.4% (FY 2009).

Eastern Union: NRIs remit record $14 billion during July-September 2008

“The remote payment proposition has been largely off the radar of many in the payments industry. But merchants with an eye on customer experience management and relationship building see mobile as a direct avenue to their consumers.

George Peabody
Director - Emerging
Technologies Advisory Service
Mercator Advisory Group

According to a report by Eastern Union, a Denmark-based money transfer company, remittances sent by the Non Resident Indians (NRIs) have seen a whopping 57% increase and reached $14.2 billion during July-September 2008 as compared to remittances recorded for the same period a year ago.

Armenian remittances drop amid global crisis

According to the Central Bank of Armenia (CBA), the total remittances inflow into Armenia has declined 7% to $102.6 million in November 2008 as compared to the figure recorded for the same period a year earlier, largely due to the economic slowdown in Russia, which is home to a large number of migrants from Armenia. The bank added that Armenia's trade deficit is expected to have exceeded $3 billion in 2008.

Remote mobile payment by smart phones to reach $8.6 billion by 2014: Mercator

According to Mercator Advisory Group, the total value of remote mobile payment made by using smart phones is expected to reach $389 million in 2009 and $8.6 billion by 2014, while the number of mobile web users is expected to increase by 50% to about 60 million in 2009 from current user base of about 40 million.

Mexico's remittances fall 3.6% in 2008

Mexico's central bank reported that the total inflow of remittances into Mexico dropped by 3.6% to $25 billion in 2008 as compared to $26 billion recorded a year ago. The fall in remittances was largely due to massive job losses suffered by the Mexican immigrants in the US, especially those employed in the construction sector. The tough stand, taken by the US and European countries on illegal migration, has also impacted the remittance flow to Mexico.