Philippines: Growth in remittances accelerates further in August
October 15, 2014
In August, remittances from Overseas Filipino Workers (OFW) increased 7.2% over the same month last year, reaching USD 2.3 billion. The print came in marginally above July’s 7.1% expansion and marked the highest pace of growth since March 2014. The overall trend also improved slightly as remittances totaled a record high USD 24.0 billion in the 12 months up to August, which was up from July’s USD 23.6 billion. The increase represented a 8.1% expansion over the same period last year, which was up from July’s 7.0% rise.
Remittances, which account for approximately 9.0% of GDP, are an important source of income for many Filipino families and thus a key driver of private consumption. According to the Central Bank, “[t]he increase in personal remittances was driven by the steady increase in transfers from land-based workers with work contracts of one year or more (5.2 percent), and sea-based and land-based workers with work contracts of less than one year (8 percent).”