Philippines: Pace of remittances growth soften in May
July 15, 2016
In May, cash remittances from Overseas Filipino Workers (OFW) rose 1.9% over the same month last year and reached USD 2.2 million. The reading was down from April’s 4.1% growth. The overall trend improved slightly, as cash remittances totaled USD 26.1 billion in the 12 months up to May, which was a tad up from April’s USD 26.0 billion. The reading represented a 2.2% expansion over the same period of the previous year, which was down from April’s 2.8% rise. Remittances, which account 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 May? 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%.