Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. said growth forecast for OFW (overseas Filipino workers) for 2009 is 10 percent, same with this year. The projected absolute value for remittances this year is $ 16.45 billion.

"Global economic slowdown and the credit crunch (will not) affect remittances because we see strong demand for our OFWs overseas," Tetangco told media people yesterday. "Countries in the Middle East (have) strong demand for our workers since they have benefited from the high oil prices and (a boom) in construction (in the area)."

OFW remittances account for 10 percent of gross domestic product. "(This means) the trade deficit is being covered by remittances," said Tetangco.

The government expects the trade gap to widen to billion this year after adjusting the import growth forecast higher to 10 percent and reducing exports lower to five percent. In nominal terms, total exports are expected to reach $ 52.3 billion this year, while imports are $ 63.3 billion.

In the first five months, remittances totaled $ 6.79 billion, up 14.74 percent year-on-year. Every month OFWs send home over a $ 1 billion. OFW foreign exchange comes from the US, Saudi Arabia, Canada, the UK, Italy, the United Arab Emirates, Singapore, Japan and Hong Kong.