In the years that passed and in the present, and even in the years to come, Filipinos leave the country to work in another, and many more Filipinos are on the process of completing their papers to do the same. The impact of the Philippine economy leads Filipino workers to flee the country in order to seek greener pasture elsewhere, simple as that. But, we never really seem to think what their impact is on the Philippine economy, from working out of country.
Over the years, our minds are set to thinking that because we export manpower to other countries, this leaves our country at a less better economic standing, because of the mere consideration that Filipino professionals choose to get employed out of the country due to the lack of employment and/or lesser paying jobs in the Philippines. This, again, points back to the fact that the Philippines have been off and on with the rise and fall of its economic stability.
Overseas Filipino Workers are the modern day super heroes. You'll be surprised at how they impact the growth of the Philippine economy when it comes to the finances they bring in from their labour abroad.
In an estimated report by the Philippine Statistics Authority (PSA), during the second quarter this year, with statistics from 2017, OFW's are around 2.3M in population, with Saudi Arabia being the most preferred country at 25.4%, the rest being UAE, Kuwait and Hong Kong.
When a Filipino worker is sent to become part of a foreign workforce, that person's sole purpose is to be able to send back a better sum of income, which can help uplift his/her family's standard of living, pay off loans, credit card/s and get out of debt altogether, and be able to provide for better education. Little do we know, their hard work and sacrifice, being away from their families and the comfort of home, not only helps to boost their position in the society, but also helps to enliven the economic standing of the Philippines with the rest of the world. How does this work?
Remittance, first of all, via remittance centres like Cebuana Lhuillier, which at one time was noted 3rd best in the world in 2012. The Philippines in April this year was determined by the World Bank in a CNN Philippines report, being the 3rd largest recipient of remittances around the globe. What is remittance?
Remittance, simply put, is part of the money earned by OFW's that are wired or transferred back to the Philippines for designated OFW families. By way of remittance, whether this be via bank transfer or money transfer, Banko Sentral ng Pilipinas (BSP), accounts for every penny that gets in through the international banking system and is detected through the balance of payments. Balance of payments is defined as, “The difference in total value between payments into and out of a country over a period."
According to an article written by Gerardo P. Sicat, from the office of the Commission on Filipino Workers, in over two decades, the rate of Philippine remittances have continuously risen throughout the years. Having to consider this is a cause and effect in the value of the US Dollar versus the currencies of the other countries in the world. In a span of 11 years, from 2001 to 2012, remittances to the Philippines have gone from $7B to $21B (US Dollars), or as estimated.
The bulk of remittances in the country are important because it plays a pivotal role in boosting the economic standing of a nation in the world, by keeping it competitive through its dominance in providing services in export business, like in the export of goods and merchandise. This, thus, create a domino effect toward the families they support and the country in general. With more remittances, Filipino families achieve a better standard of living, and the same steady flow of remittances help by way of giving the country the ability to acquire services and merchandise from its foreign counterparts, which in turn can aid in the settlement of the country's debts and liabilities, as well as our commitments internationally. Overall, it will help to achieve a stable economic reputation for the country and be at par with the rest of the world.
Sources: https://www.cfo.gov.ph/news/from-overseas-filipinos/481-worker-remittances-and-the-philippine-economy.html http://cnnphilippines.com/business/2018/04/24/world-bank-PH-3rd-remittances.html https://www.cebuanalhuillier.com/worlds-3rd-largest-remittance-company-partners-with-cebuana-lhuillier/ https://psa.gov.ph/content/total-number-ofws-estimated-23-million-results-2017-survey-overseas-filipinos https://en.m.wikipedia.org/wiki/Remittance