Philippines: Remittances reach all-time high in November
January 15, 2014
In November 2013, remittances from Overseas Filipino Workers (OFW) increased 7.5% over the same month of the previous year, reaching a record high of USD 2.1 billion. The print was above the 7.0% expansion observed in October. The upward trend continues, with remittances adding USD 22.6 billion in the 12 months up to November (October: USD 22.4 billion). This represents a 6.4% expansion over the same period the previous year (October: +6.4% 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. The increase in remittances this month was driven in part by the response to the devastating typhoon that struck the Philippines in early November.
FocusEconomics Consensus Forecast panelists expect private consumption to grow 5.4% in 2014, which is unchanged from the previous month's projection. For 2015, the panel also expects private consumption to expand 5.4%.
Author: Carl Kelly, Economist