Philippines: Remittances rebound in December
February 19, 2016
In December, cash remittances from Overseas Filipino Workers (OFW) recovered, rising 4.9% over the same month of the previous year and reaching 2.5 USD billion. The reading marked the largest gain in five months and contrasted November’s 6.2% decrease. The overall trend improved slightly, as cash remittances totaled USD 25.8 billion in the 12 months up to December, which was a notch up from November’s USD 25.7 billion. The increase marked a 4.6% expansion over the same period of the previous year, which was down slightly from November’s 4.9% rise. Remittances, which accounted for approximately 9.8% of GDP in 2015, are an important source of income for many Filipino families and thus a main driver of private consumption.FocusEconomics Consensus Forecast panelists expect private consumption to grow 6.0% in 2016, which is up 0.1 percentage points from last month’s projection. For 2017, the panel expects private consumption to expand 5.7%.