Philippines: Cash remittances edge higher in May
July 16, 2018
In May, cash remittances from Overseas Filipino Workers (OFW) reached USD 2.5 billion, a 6.9% expansion from the same month of the previous year. The reading came in below April’s 12.7% year-on-year expansion.
The overall trend improved, as cash remittances in the 12 months up to May totaled USD 28.5 billion, coming in marginally above the USD 28.4 billion total recorded in the 12 months up to April. May’s 12-month total was 4.2% higher than in the corresponding period last year and slightly above from the 4.1% annual increase observed in the 12 months up to April.
Remittances, which accounted for approximately 10.0% of GDP in 2017, are an important source of income for many Filipino families and thus constitute one of the main drivers of private consumption. The increase observed in May was mainly due to higher remittances from countries including the United States, the United Kingdom and Singapore.
Philippines Private Consumption Forecast
FocusEconomics Consensus Forecast panelists expect private consumption to grow 6.3% in 2018, which is unchanged from last month’s projection. For 2019, the panel expects private consumption to expand 5.9%.