Philippines: Remittances moderate in September
November 15, 2011
In September, remittances from Overseas Filipino Workers (OFW) rose 8.4% over the same month last year to USD 1.74 billion, falling below the 11.1% growth recorded in August. On a monthly basis, remittances rose 3.9%, which contrasted the 2.6% contraction in August. In the third quarter, remittances amounted to USD 5.1 billion, which was 8.5% higher than the level recorded in the same period of the previous year. According to the Central Bank, ?remittances continued to be an important contributor in solidifying the country's economic fundamentals amidst lingering global economic uncertainties, driven by prospects of sustained demand for Filipino workers abroad.? 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.