Philippines: Remittances hit all-time high in 2014

In December, cash remittances from Overseas Filipino Workers (OFW) increased 6.6% over the same month of the previous year, reaching USD 2.3 billion. The print came in above November’s 2.0% expansion, which had marked the lowest pace of growth since January 2009. The overall trend improved as remittances totaled a record-high USD 24.3 billion in the 12 months up to December, which followed November’s USD 24.2 billion, and marked a record high. The increase represented a 5.8% expansion over the same period of the previous year but fell short of November’s 6.1% rise.

Remittances, which accounted for approximately 8.5% of GDP in 2014, are an important source of income for many Filipino families and thus a key driver of private consumption. According to the Central Bank, land-based workers accounted for the largest share of remittances, while a smaller proportion of remittances came from sea-based workers. Remittances mainly came from the United States, Saudi Arabia and the United Arab Emirates.

FocusEconomics Consensus Forecast panelists expect private consumption to grow 5.9% in 2015, which is unchanged from last month’s projection. For 2016, the panel expects private consumption to expand 5.7%.