Philippines: Remittances rise in June
August 15, 2013
In June, remittances from Overseas Filipino Workers (OFW) increased 5.8% over the same month last year, reaching USD 1.9 billion. The print was above the 5.3% expansion observed in May. The trend points upwards, with remittances adding USD 22.0 billion in the 12 months up to June (May: USD 21.9 billion). This represents a 6.6% expansion over the same period last year (May: +6.4% year-on-year).
The Central Bank stated that remittance flows remain strong due in part to ongoing demand for skilled Filipino workers. In addition, continued improvements in transaction services offered by banks and non-bank are expected to boost remittance flows going forward. Remittances account for approximately 9% of GDP and are an important source of income for many Filipino families. OFW funds are significant to the economy as they are one of the key drivers of private consumption.
FocusEconomics Consensus Forecast panellists expect private consumption to grow 5.5% in 2013, which is unchanged from the previous month's projection. For 2014, the panel expects private consumption to expand 5.4%.