Philippines: Cash remittances increase in July
In July, cash remittances from Overseas Filipino Workers (OFW) reached USD 2.4 billion, a 5.2% increase from the same month of the previous year. The reading contrasted June’s 4.5% decline, and was driven by greater remittances from the U.S, the UK, Canada and Germany. As a result, year-to-date remittances totaled USD 16.6 billion, up 3.0% from the corresponding period last year. However, the trade deficit has widened by substantially more as the government’s infrastructure push sucks in imports, putting downward pressure on the currency.
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.