Philippines: Remittances decline year-on-year in August
October 14, 2020
Remittances summed USD 2.5 billion in August (July: USD 2.8 billion), representing a 4.1% year-on-year decrease. This follows July's 7.8% year-on-year increase. On a 12-month rolling basis in August, remittances tallied USD 29.6 billion, below the USD 29.7 billion registered in July. August’s 12-month rolling sum marked a 0.3% decline from a year earlier (July: +0.5% year-on-year). Remittances, which accounted for roughly 9% of GDP in 2019, are an important source of income for many Filipino families and a key driver of private consumption.Private consumption is seen contracting 5.7% this year, which is down 0.1 percentage points from last month’s forecast. Next year, household spending is seen recovering and growing 6.2%, which is up 0.3 percentage points from last month’s projection.