Philippines: Remittances recover in September
November 17, 2015
In September, cash remittances from Overseas Filipino Workers (OFW) recovered and rose 4.3% over the same month last year, reaching 2.2 USD billion. The reading marked a turnaround following August’s 0.6% contraction, which had marked the first drop since April 2003. The overall trend improved slightly, as cash remittances totaled USD 25.1 billion in the 12 months up to September, which marked yet another record high and was slightly up from August’s 25.0 USD billion. The increase marked a 4.3% expansion over the same period last year, which was down from August’s 4.7% 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 key 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 6.0% in 2015, which is unchanged from last month’s projection. For 2016, the panel expects private consumption to expand 5.7%, which is up 0.1 percentage points from last month’s estimate.