Philippines Remittances

Philippines

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).”

FocusEconomics Consensus Forecast panelists expect private consumption to grow 5.6% in 2014, which is down 0.1 percentage points from last month’s projection. For 2015, the panel expects private consumption to expand 5.7%.


Author: Teresa Kersting, Economist

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Philippines Remittances Chart


Philippines Remittances April 2014

Note: Monthly OFW remittances in USD billion and annual variation in %.
Source: Central Bank of the Philippines (BSP).


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