The Economic
Contributions of our Modern Heroes
Our Overseas
Filipino Workers (OFWs) are dubbed as “modern heroes”. This is because of the remittances
they make every day which increase our foreign reserves. Our foreign reserves
are used for settling foreign debts and enables the BangkoSentral ng Pilipinas
to print and circulate more money in the economy.
Since the
passage and enactment of The 1974 Labor Code of the Philippines (under then
Presidential Decree 442), more and more Filipinos choose to work abroad every
year (Philippine Statistics Authority). Along with the increase in the number
of OFWs is the significant rise in the amount of their remittances. In fact, in
2011, the remittances sent by OFWs to their families totalled 20.11 Billion US
Dollars or 871.25 Billion Pesos. While last year (2015), OFWs sent a total of $26.92
billion (P1.20 trillion) back (GMA News Online).
In addition to
their remittances, OFWs also contribute to the economy by increasing the gross
national income (GNI). The GNI represents the gross domestic product (GDP)
after net primary income from abroad has been accounted for (Philippine
Statistics Authority). The Philippine Statistics Authority further reports that
in 2011, the compensation income of OFWs which include overtime premium,
holiday premium and clothing, laundry, medical, and other special allowances
has been accounted to have a nominal value of 3.35 billion, contributing 26
percent to the total GNI, which significantly improved the same.
The remittances
and compensation of OFWs are deemed to have substantially contributed to the
growth of our national economy which hit 4.7 percent annually from year 2000 to
2011.
These are the
primary contributions of OFWs to our economy which do not improve the lives of
their families alone, but of our nation as a whole.
References:
GMA News Online. "INFOGRAPHIC: Where $26.92B of OFW Remittances
Come from." GMA
News
Online. 9 June 2015. Web. 24 Feb. 2016. <http://www.gmanetwork.com/news/story/500918/money/infographic-where-26-92b-of-ofw-remittances-come-from>.
Philippine Statistics Authority. "NSCB - “Counting and Monitoring
the Contribution of OFWs."
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