Philippines: Remittances post faster growth in November
January 15, 2016
In November, cash remittances from Overseas Filipino Workers (OFW) ticked up, rising 3.2% over the same month of the previous year, reaching 2.2 USD billion. The reading followed October’s modest 0.2% increase. The overall trend was stable, as cash remittances totaled USD 25.1 billion in the 12 months up to November, mirroring October’s result. The increase marked a 3.9% expansion over the same period of the previous year, which was up slightly from October’s 3.7% rise. Remittances, which accounted for approximately 8.5% of GDP in 2014, are an important source of income for many Filipino families and thus a main driver of private consumption. According to the Central Bank, cash remittances mostly came from the U.S., Saudi Arabia, the United Arab Emirates and Singapore.FocusEconomics Consensus Forecast panelists expect private consumption to grow 5.9% in 2016, which is up 0.1 percentage points from last month’s projection. For 2017, the panel expects private consumption to expand 5.6%.