Philippines: Remittances continue to rise in July
September 16, 2013
In July, remittances from Overseas Filipino Workers (OFW) increased 6.6% over the same month last year, reaching USD 1.9 billion. The print was above the 5.8% expansion observed in June. The upward trend continues, with remittances adding USD 22.1 billion in the 12 months up to July (June: USD 22.0 billion). This represents a 6.7% expansion over the same period last year (June: +6.6% year-on-year).
The Central Bank stated that, "the steady deployment of OFW remained the key driver of the growth in remittance flows." In addition, continued improvements in transaction services offered by banks and non-banks are expected to boost remittance flows going forward. 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.
FocusEconomics Consensus Forecast panelists expect private consumption to grow 5.5% in 2013, which is unchanged from the previous month's projection. For 2014, the panel expects private consumption to expand 5.4%.
Author: Carl Kelly, Economist