Philippines: Remittances growth picks up to four-month high in July
September 16, 2014
In July, remittances from Overseas Filipino Workers (OFW) increased 7.1% over the same month last year, reaching USD 2.3 billion. The print came in marginally above June’s 7.0% expansion and marked the highest pace of growth in four months. The overall trend also improved slightly as remittances totaled USD 23.6 billion in the 12 months up to July, marking a modest increase over June’s USD 23.5 billion and representing the largest volume on record. The increase represented a 7.0% expansion over the same period last year, which was slightly up from June’s 6.9% rise.
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. According to the Central Bank, “[t]he continued expansion in personal remittances during the first seven months of 2014 was mainly due to the steady increase in remittance flows from both land-based workers with long-term contracts (by 5 percent) and sea-based and land-based workers with short-term contracts (by 8.4 percent).”