Philippines: Cash remittance growth slows in November
January 15, 2019
Cash remittances from Overseas Filipino Workers (OFW) totaled USD 2.3 billion in November, a 2.8% increase compared to the same month of the previous year. This was down from the 8.7% year-on-year rise recorded in October, when remittances reached USD 2.5 billion. November’s result was primarily supported by remittance inflows from the U.S. and Canada.
On a cumulative basis, cash transfers in the 12 months up to November totaled USD 28.8 billion, stable from October’s 12-month total.
Though the print was softer in November, transfers ahead of holiday spending likely sustained growth, while December usually sees high remittances also due to the holiday season. Consequently, solid cash remittances throughout the fourth quarter should have supported robust private outlays in Q4, though overall, private consumption growth likely continued to soften. Remittances, which accounted for approximately 10.0% of GDP in 2017, are expected to post another record performance in 2018.
Philippines Private Consumption Forecast
FocusEconomics Consensus Forecast panelists expect private consumption to grow 5.5% in 2019, which is unchanged from last month’s forecast, and 5.5% again in 2020.