Philippines: Growth in remittances accelerates further in September
November 17, 2014
In September, remittances from Overseas Filipino Workers (OFW) increased 8.1% over the same month last year, reaching USD 2.3 billion. The print came in above August’s 7.2% expansion and marked the highest pace of growth since December 2013. The overall trend also improved slightly as remittances totaled a record-high USD 24.4 billion in the 12 months up to September, which was up from August’s USD 24.0 billion. The increase represented a 9.4% expansion over the same period last year and exceeded the previous month’s 8.1% 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 in the first nine months of the year was driven largely by the steady increase in transfers from land-based workers with work contracts of one year or more (5.4 percent), and sea-based workers with work contracts of less than one year (8.2 percent)”.