Mideast strife to dent remittances

Mounting geopolitical tensions in the Middle East threaten to stifle the flow of remittances to the Philippines, a critical pillar of the domestic economy, as the region remains a primary destination for the country's overseas workforce.

- BY DERCO ROSAL

The Asian Development Bank warned that a prolonged conflict between Israel and Iran could disrupt the livelihoods of millions of Filipinos, potentially curbing the record-breaking capital inflows that bolster the nation's consumption-led growth.

James Villafuerte, regional lead economist at the ADB, said in a recent interview that while volatile fuel prices pose an immediate strain on the local economy, the secondary risk lies in the displacement of overseas Filipinos.

The Middle East currently ranks as the third-largest destination for Filipino migrants, accounting for approximately 20 percent of the total overseas population.