Philippines: Remittance growth accelerates further in January
March 15, 2018
In January, cash remittances from Overseas Filipino Workers (OFW) reached USD 2.4 billion, a 9.7% increase from the same month of the previous year. The reading came in above December’s already robust 7.1% annual increase.
The overall trend strengthened, as cash remittances in the 12 months up to January totaled USD 28.3 billion, up from USD 28.1 billion in the 12 months up to December. January’s 12-month total was 4.4% higher than in the corresponding period last year, up from December’s 4.3% year-on-year increase.
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. The expansion registered in December was mainly due to higher remittances from the United States, the United Arab Emirates, Canada and Singapore.
Philippines Remittances Forecast
FocusEconomics Consensus Forecast panelists expect private consumption to grow 6.0% in 2018, which is unchanged from last month’s projection. For 2019, the panel expects private consumption to expand 5.9%.