Philippines: Remittances inflows gain momentum in May
July 15, 2019
Cash remittances from Overseas Filipino Workers (OFW) increased a total of USD 2.6 billion in May, which marked a 5.7% rise from the same month a year prior, accelerating from the 4.0% year-on-year uptick registered in April (USD 2.4 billion).
On a cumulative basis, cash transfers in the 12 months up to May totaled USD 29.5 billion, slightly up from April’s USD 29.3 billion 12-month sum.
Cash remittances in May were again supported by strong inflows from the U.S.—the origin of over a third of all remittances— benefiting from the U.S.’ rock-solid labor market. Remittances from Saudi Arabia, Singapore, and the U.A.E also boosted headline growth. Steady remittances from overseas Filipinos should continue to buttress private consumption this year. Remittances, which accounted for close to 9% of GDP in 2018, are an important source of income for many Filipino families.
Author: Lindsey Ice, Economist