Philippines: Remittances inflows gather steam in September
November 15, 2019
Cash remittances from Overseas Filipino Workers (OFW) totaled USD 2.4 billion in September, increasing 6.3% on an annual basis, which was up from the 4.6% expansion in August (USD 2.6 billion). Solid remittances were driven by sustained inflows from the U.S.—which constitute over a third of all remittances—Saudi Arabia, Singapore, and the United Arab Emirates.
On a cumulative basis, cash transfers in the 12 months up to September rose to USD 29.8 billion from the USD 29.7 billion 12-month sum in August.
Remittances, which accounted for close to 9% of GDP in 2018, are an important source of income for many Filipino families. However, economic slowdowns hitting the U.S. and many neighboring Asian countries such as Singapore could encumber remittances in the quarters ahead.
Author: Lindsey Ice, Economist