Philippines: Remittances hit all-time high in October
December 16, 2013
In October, remittances from Overseas Filipino Workers (OFW) increased 7.0% over the same month last year, reaching a record high of USD 2.1 billion. The print was above the 5.3% expansion observed in September. The upward trend continues, with remittances adding USD 22.4 billion in the 12 months up to October (September: USD 22.3 billion). This represents a 6.4% expansion over the same period last year (September: +6.5% year-on-year).
The Central Bank stated that remittances continue to be driven by, "sustained demand for skilled and professional Filipino manpower." 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. Remittances are expected to increase even further in the coming months in response to the devastating typhoon that struck the Philippines in early November.
FocusEconomics Consensus Forecast panelists expect private consumption to grow 5.3% in 2013, which is unchanged from the previous month's projection. For 2014, the panel expects private consumption to expand 5.4%, which is also unchanged from last month's forecast.
Author: Carl Kelly, Economist