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Terpe
17th April 2015, 06:13
The Philippines is one of the rare countries in the world where a significant proportion of the country’s GDP comes from remittances from citizens living and working abroad. Many Filipinos have managed to obtain an education, and raise their families – all thanks to the power of remittances.

Impact of remittances on families

Remittances from abroad have a larger impact on Filipino society than we think. One dollar can pay for only a quarter of a small cup of coffee in the States, that same dollar can buyhalf a pound of organic coffeein the Philippines when converted to Filipino Pesos. As you can see, remittances, which may only comprise a miniscule component of the sender’s monthly income, mean a lot to their families back in the Philippines. Many Filipinos’ lives have been greatly improved because of remittances that their loved ones have sent back from overseas.

Impact of remittances on societies

Due in large part to remittances from Filipinos working overseas, social conditions in the Philippines have been largely mproved. The rate of child labor has decreased greatly, accompanied by an increase in child schooling.

Remittances also reduce the burden on Filipinos who might otherwise have to work long hours in order to support their families, freeing up time for them to pursue education and spend time with their loved ones. This has a beneficial effect on society in general by improving the well-being and literacy rates of the population. It also leads to a better-educated workforce that contributes more to the economy and the country as a whole.

Impact of remittances on the economy

The Philippines has a high percentage of its population living and/or working overseas. A whopping 17% of Filipino families receive money from overseas remittances. The Filipino economy owes a great deal to remittances from Filipinos working abroad. 10% of the GDP is derived from remittances, which is a greater percentage than almost any other country in the world.

As a result of these remittances, the purchasing power of Filipinos has been greatly increased, enabling them to enjoy improved living conditions. Some entrepreneurial Filipinos have also set up businesses with money from remittances, providing a much-needed stimulus to the economy.

Filams are a powerhouse

Currently, there are 1.7 million Filipinos living or working in the United States, and many more Americans of Filipino descent who still retain strong ties to the Philippines. Compared to many other immigrant groups in the USA, Filams (Filipino Americans) tend to be better educated, and earn more in general. A significant proportion of these people who remit money back to the Philippines also manage to save while sending money too.

Remittances have played a crucial role in shaping the society and economy of the Philippines. For many Filipinos living abroad who remit money home on a regular basis, they are modern heroes to their families. Without their heartfelt contributions, the Philippines of today would be a vastly different place.

Source (http://blog.sharemoney.com/philippines-the-power-of-remittances/)

stevewool
17th April 2015, 06:40
A very good read Peter, but how much longer will this last, its getting harder to support yourself and if you start a a family while working away too, the money cannot flow both ways sometimes

Terpe
17th April 2015, 06:51
A good question Steve, but somehow those remittances seem to continue to grow despite RoE and Philippine economic strength.

I can see the OFW's hard earned money getting spent everday. Especially in the Malls.
There's a massive market here for OFW housing. Condo's especially.
It seems so easy to convince the OFW to invest.

So many houses just left abandoned though and with the climatic conditions they soon deteriorate so badly.
Could be a nice little maintenance business opportunity :biggrin:

Nah, can't be bothered.

fred
17th April 2015, 14:54
The Philippines is one of the rare countries in the world where a significant proportion of the country’s GDP comes from remittances from citizens living and working abroad.

I read that bit and stopped there because it simply is not true.
For starters,OFW cash remittances are NOT included in GDP figures..
When they say "a significant figure" what does that mean in % terms when calculated against the total GDP of the R.P?
OFW cash is more than welcome dont get me wrong..25 $$$ Billion a year cant be bad for ANY economy but lets get things in proportion..
The good thing about OFW cash is that most of it goes directly to Filipino`s that are not Politicians!