Philippines: Failing oil price affects remittance

Budget losses as a consequence of falling oil price in many oil exporting countries badly impact the flow of remittance into the Philippines, reported the Financial Times on December 6.​

Illustrative image (Source: Internet)

London (VNA) – Budget losses as a consequence of falling oil price in many oil exporting countries badly impact the flow of remittance into the Philippines and create pressure for its labour market, reported the Financial Times on December 6.

Foreign labourers including Filipinos working for oil companies in West African countries or the Gulf States, are losing jobs.

Overseas remittance to the Philippines has been on the rise for a long time, contributing to the country’s economic development. According to the Central Bank of the Philippines, in the first six months of the year, remittance reached 30 billion USD, accounting for 9 percent of the gross domestic product (GDP).

As many Filipinos lose their jobs because of the failing oil price, remittance this year is estimated to increase only 2.2 percent, the lowest rate in the past ten years, said the World Bank.

As of 2015, there were about 1.8 million Filipinos working in foreign countries, mostly Saudi Arabia, Qatar, United Arab Emirates and Kuwait.

The number of Filipinos losing their jobs in Saudi Arabia hit the highest with 10,000 people, as the country cut its budget and some major construction companies are in trouble. Remittance from Saudi Arabia to the Philippines dropped 9 percent year on year to 1.73 billion USD in the January-August period this year.-VNA

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