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 manyoil exporting countries badly impact the flow of remittance into thePhilippines and create pressure for its labour market, reported the FinancialTimes on December 6.

Foreignlabourers including Filipinos working for oil companies in West Africancountries or the Gulf States, are losing jobs.

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

Asmany Filipinos lose their jobs because of the failing oil price, remittancethis year is estimated to increase only 2.2 percent, the lowest rate in thepast ten years, said the World Bank.

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

Thenumber of Filipinos losing their jobs in Saudi Arabia hit the highest with10,000 people, as the country cut its budget and some major constructioncompanies are in trouble. Remittance from Saudi Arabia to the Philippinesdropped 9 percent year on year to 1.73 billion USD in the January-August periodthis year.-VNA

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