Philippines: Remittances accelerate in May
July 15, 2011
In May, remittances from Overseas Filipino Workers (OFW) rose 6.9% over the same month last year to total USD 1.69 billion. The expansion represented an improvement compared to the 6.3% growth tallied in April. According to the Central Bank, some 73% of remittances were sent from the United States, Europe and the Middle East. In the three months to May, remittances amounted to USD 4.9 billion, which was 5.8% higher compared to the same period last year, when remittances totalled USD 4.7 billion. Remittances account for approximately 9% of GDP and are an important source of income for many Filipino families. Given its weight in the economy, the OFW funds sent from abroad are a key driver of private consumption. Moreover, the steady flow of remittances supports the local currency.