Philippines: Remittances hit record high in 2012
February 15, 2013
In December, remittances from Overseas Filipino Workers (OFW) increased 9.7% over the same month the year before to USD 2.0 billion, which was above the 7.6% expansion observed in November. As a result of the higher annual reading, remittances added a record USD 21.4 billion in 2012, which marked a 6.3% expansion over the same period the year before (2011: +7.2% yoy).
According to the Central Bank, "remittances continue to draw strength from the increasing demand for a wider range of skilled Filipino workers abroad, mostly in the Middle East". 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.