Philippines: Pace of remittances growth accelerates in June
August 15, 2016
In June, cash remittances from Overseas Filipino Workers (OFW) rose 4.8% over the same month last year and reached USD 2.3 million. The reading was up from May’s 1.9% growth and marked a four-month high. The overall trend improved slightly, as cash remittances totaled USD 26.2 billion in the 12 months up to June, which was a tad up from May’s USD 26.1 billion. The reading represented a 1.8% expansion over the same period of the previous year, which was down from May’s 2.2% rise. Remittances, which accounted for approximately 9.8% of GDP in 2015, are an important source of income for many Filipino families and thus a main driver of private consumption. Remittances in June came mainly from the United States, Saudi Arabia, the United Arab Emirates and Singapore.FocusEconomics Consensus Forecast panelists expect private consumption to grow 6.4% in 2016, which is up 0.2 percentage points from last month’s projection. For 2017, the panel expects private consumption to expand 5.9%.