According to Standard Chartered Bank, the BPO service sector is expected to supply large amounts of money into the economy of the Philippines even though the growth of remittance is slow. It might become a normal scenario for the Philippines during the weakened global economy.
Standard Chartered Economist for Asia Chidu Narayanan stated that even though the remittance growth will be much sluggish, it will continue to add 6% to the current account surplus in the medium term.
He also said that electronic and BPO service exports would account for $67 billion of inflows for the year 2016. The BPO service industry is said to become the biggest contributor by overtaking overseas remittances 2017.
Narayan said that after a drop of 5.86% in July, the remittance increased by 16.45% year-on-year. Remittance from Asia expanded by 31% year-on-year. The United States is the biggest contributor of remittance flows to the Philippines. The overall figure is one-third of the total amount sent. Saudi Arabia and the United Arab Emirates accounts for 10% and 7.8% respectively. Asia accounts for 19% of it while Europe accounts for one-third.
Bangko Sentral ng Pilipinas latest data showed the amount of money that Filipinos working and living abroad sent back home increased by 16.3% year-on-year to $2.319 billion.