Philippines: Remittances moderate in April
June 17, 2014
In April, remittances from Overseas Filipino Workers (OFW) increased 6.1% over the same month last year, reaching USD 1.9 billion. The print represented a deceleration compared to March’s 7.7% expansion and marked the lowest pace of growth in seven months. The overall trend stabilized as remittances totaled USD 23.1 billion in the 12 months up to April, matching March’s result which had marked the largest volume on record. The increase represented a 6.8% expansion over the same period last year (March: +6.8% year-on-year).
Remittances, which account for approximately 9.0% of GDP, are an important source of income for many Filipino families and thus a key driver of private consumption. According to the Central Bank, April’s reading was driven by, “the steady increase in remittance flows from both land-based workers with long-term contracts (5 percent) and sea-based and land-based workers with short-term contracts (8.3 percent).”