A recent study by economist Alyssa Nuñez of the University of Asia and the Pacific found that remittances from overseas foreign workers (OFWs) are a driving force of the Filipino economy.
Remittances are salaries earned abroad, sent back to families, and spent in the Philippines. These payments power the nation’s consumption-driven economy. In fact, in 2022, as remittances hit an all-time high, the economy grew 7.6% – the fastest rate since 1976. Remittances provide a stable income stream for millions – giving them the resources to buy goods, invest in education, alleviate poverty, and increase savings.
The healthcare sector plays a significant role in remittances’ economic stimulus. The Philippines remains the largest supplier of nurses internationally. As a result, international healthcare employment benefits individual families, while simultaneously stimulating the broader domestic economy.
Remittances play a vital role in the Philippine’s domestic economy – and in an increasingly globalized world, they are all but certain to become even more of a financial engine. Read about the study in Malaya Business Insight here.