Philippines: Remittances gain pace in July
September 17, 2012
In July, remittances from Overseas Filipino Workers (OFW) increased 5.4% over the same month last year to USD 1.8 billion, which was above the 4.2% expansion observed in June. Despite the improvement, the trend points downwards, with remittances adding USD 20.7 billion in the last 12 months, a 6.5% expansion over the same period last year (June: +6.6% year-on-year). According to the Central Bank, notwithstanding the weak global economic conditions particularly in the Eurozone and the geopolitical tensions in some parts of the Middle East, remittances remained resilient on the back of sustained demand for skilled Filipino workers overseas. 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.