Philippines: Remittances accelerate to six-month high in June
August 15, 2014
In June, remittances from Overseas Filipino Workers (OFW) increased 7.0% over the same month last year, reaching USD 2.0 billion. The print came in above May’s 6.1% expansion and marked the highest pace of growth in six months. The overall trend improved slightly as remittances totaled USD 23.5 billion in the 12 months up to June, marking a modest increase over May’s USD 23.3 billion and representing the largest volume on record. The increase represented a 6.9% expansion over the same period last year, which was slightly up from May’s 6.8% rise.
Remittances, which account for approximately 9.0% of GDP, are an important source of income for many Filipino families and thus a key driver of private consumption. According to the Central Bank, “[t]he sustained growth in personal remittances during the January–June 2014 period was driven by increased remittance flows from both land-based workers with long-term contracts (by 4.8 percent) and sea-based and land-based workers with short-term contracts (by 8.8 percent).”