Philippines: Remittances edge down but remain strong in November
January 15, 2013
In November, remittances from Overseas Filipino Workers (OFW) increased 7.6% over the same month the year before to USD 1.9 billion, which was below the 8.5% expansion observed in October. As a result of the lower annual reading, the trend points downwards, with remittances adding USD 21.2 billion in the last 12 months, a 6.0% expansion over the same period the year before (October: +6.3% yoy).
According to the Central Bank, "remittances continued to draw strength from the increasing demand for skilled and professional Filipinos abroad along with innovations in remittance services offered by banks and financial institutions". Remittances account for approximately 9% of GDP and are an important source of income for many Filipino families. Given its significance to the economy, OFW funds sent from abroad are one of the key drivers of private consumption in the country.