Remittances, growth forecast for developing AsiaBy Randell Tiongson on December 19th, 2009
- Philippine Remittances reach highest level
- A new record high for remittances was seen this Oct, reaching $1.53 bln.
- This was up by 6.7% Yoy and was better than the previous high of $1.49 bln established in the month of June.
- Remittances year to date totaled $14.3 bln, up 4.5% YOY
- The Asian Development Bank raised growth forecasts for Asia’s developing economies
- Regional economies should grow +4.5% in 2009 and +6.6% in 2010.
- Three months ago the ADB’s forecast was a +3.9% in 2009 and +6.4% in 2010
- This signifies expectations of a V-shaped recovery for EMA
- Essentially, the higher forecast was due to better than expecetd growth in the third quarter of 2009.
- However they also warned against any “hasty withdrawal of stimulus packages”.
- “If done too soon, recovery may be at risk; if too late, fiscal deficits and monetary expansion could become unsustainable and inflationary.”
- Inflation is expected to be muted in short term but expected to pick up in medium term.
- Emerging markets expected to attract capital flows given higher growth relative to developed economies.
- Risk to EMA growth is a short-lived recovery of more developed global economies.
ADB raises growth forecast for developing Asia