Philippines: Remittances maintain healthy pace
July 16, 2012
In May, remittances from Overseas Filipino Workers (OFW) increased 5.1% over the same month last year to USD 1.8 billion, which was slightly below the 5.3% expansion observed in April. As a result, the trend remained broadly stable, with remittances adding USD 20.5 billion in the last 12 months, marking a 6.8% expansion over the same period last year (May: +7.0% year-on-year). According to the Central Bank, remittance flows were underpinned by sustained growth in transfers from land-based OFW with work contracts of one year or more, along with sea-based and land-based contracts workers with short-term contracts. 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.