A NEW research study revealed that remittances from overseas foreign workers (OFWs) – particularly healthcare professionals – significantly stimulate the Philippines’ economic growth and development.
According to economist Alyssa Nuñez of the University of Asia and the Pacific, they conducted the study called “The Economic Impact of Remittances from Filipino Healthcare Professionals in the US to the Philippines” as the Bangko Sentral ng Pilipinas (BSP) reported recently that monthly cash remittances reached a six-month high, rising 2.1 percent from a-year-ago levels.
Nuñez said it is clear that remittances from OFWs in the US—specifically those working in the healthcare sector—are incredibly important to the wellbeing of individuals and families in the Philippines, as well as the growth and stability of the nation’s economy.
Remittances have played an increasingly significant role in the Philippine economy. Remittances to the
Philippines totaled US$31.19 billion, or 9.2 percent of the Philippine Gross Domestic Product (GDP), in 2020.
By way of comparison, total remittances to the Philippines were US$10.7 billion in 2005, and only US$290.8 million in 1978.
Among the study’s findings is that the US is by far the largest source of remittances to the Philippines,
accounting for nearly 41 percent of all remittances sent to the country in 2021. The next closest country
accounted for only 7 percent of remittances to the Philippines that year.
The study affirms that remittances provide stable support for the household consumption of essential goods, help alleviate poverty, and increase savings and investments. A survey by the BSP found that 96 percent of Filipino households spent a good portion of remittances on food and other household needs, 50.5 percent spent them on education, and 45.8 percent used them toward medical expenses.
The full research study on the economic importance of remittances to the Philippines can be found at https://www.scribd.com/document/669765966/Philippines-Remittances-Economic-Analysis. The research was supported by Health Carousel, a leading nursing recruitment firm.