Philippines: Remittances contract in July
September 15, 2016
In July, cash remittances from Overseas Filipino Workers (OFW) dropped 5.4% over the same month last year to USD 2.1 billion. The reading contrasted the previous month’s 4.8% increase and marked the steepest fall in eight months.
The overall trend deteriorated slightly, as cash remittances totaled USD 26.1 billion in the 12 months up to July, which was a tad down from June’s USD 26.2 billion. The reading represented a 1.4% expansion over the same period of the previous year, down from the previous month’s 2.4% rise. Remittances, which accounted for approximately 9.8% of GDP in 2015, are an important source of income for many Filipino families and thus a main driver of private consumption. Remittances in July came mainly from the United States, Saudi Arabia, the United Arab Emirates and Singapore.