Philippines: Cash remittances decelerate to six-month low in February
April 15, 2019
Cash remittances from Overseas Filipino Workers (OFW) totaled USD 2.3 billion in February, which was a 1.5% increase from the same month a year prior. The print was a deceleration from the 4.4%% rise registered in January (USD 2.5 billion) and the lowest print in six months.
On a cumulative basis, cash transfers in the 12 months up to February totaled USD 29.1 billion, a notch up from January’s USD 29.0 billion.
Cash remittances in February continued to be supported by strong inflows from the U.S.—the origin of over a third of all remittances—followed by Saudi Arabia, Singapore, and the UK. Steady remittances from overseas Filipinos will continue to support private consumption this year. Remittances, which accounted for nearly 10% of GDP in 2018, are an important source of income for many Filipino families.
Philippines Private Consumption Forecast
Last month, FocusEconomics Consensus Forecast panelists expected private consumption to grow 5.7% in 2019, which was up 0.1 percentage points from last month’s forecast, and 5.6% in 2020. New forecasts will be published on 19 March.