Philippines: Remittance growth decelerates in February
April 20, 2018
In February, cash remittances from Overseas Filipino Workers (OFW) reached USD 2.3 billion, a 4.5% increase from the same month of the previous year. The reading came in below January’s robust 9.7% annual increase.
The overall trend strengthened, as cash remittances in the 12 months up to February totaled USD 28.4 billion, slightly up from USD 28.3 billion in the 12 months up to January. February’s 12-month total was 4.5% higher than in the corresponding period last year, up from January’s 4.4% 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, Germany and Malaysia.
Philippines Private Consumption 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%.
