Philippines: Remittances growth rises in April
June 18, 2018
In April, cash remittances from Overseas Filipino Workers (OFW) reached USD 2.3 billion, a 12.7% expansion from the same month of the previous year. The reading contrasted March’s 9.8% year-on-year contraction.
The overall trend improved, as cash remittances in the 12 months up to April totaled USD 28.4 billion, coming in above the USD 28.1 billion recorded in the 12 months up to March. April’s 12-month total was 4.1% higher than in the corresponding period last year and an acceleration from the 2.6% annual increase observed in the 12 months up to March.
Remittances, which accounted for approximately 10.0% of GDP in 2017, are an important source of income for many Filipino families and thus constitute one of the main drivers of private consumption. The increase observed in April was mainly due to higher remittances from countries such as the United States, Canada and Singapore.
Philippines Private Consumption Forecast
FocusEconomics Consensus Forecast panelists expect private consumption to grow 6.0% in 2018, which is unchanged from last month’s projection. For 2019, the panel expects private consumption to expand 5.9%.