Philippines: Remittances inflows surge in July
September 16, 2019
Cash remittances from Overseas Filipino Workers (OFW) totaled USD 2.6 billion in July, increasing a sharp 7.5% in annual terms and rebounding from the 2.9% decline in June (USD 2.3 billion). Stronger remittances inflows were driven by higher cash transfers from the U.S., Saudi Arabia, Singapore and the United Arab Emirates.
On a cumulative basis, cash transfers in the 12 months up to July totaled USD 29.6 billion, up from the USD 29.4 billion 12-month sum in June.
Remittances, which accounted for close to 9% of GDP in 2018, are an important source of income for many Filipino families. With economic slowdowns hitting the U.S. and many neighboring Asian countries, remittances could take a beating in the quarters ahead, which could pass through to slower private consumption.
Author: Lindsey Ice, Economist