Philippines: Remittances slow in September but remain resilient
November 15, 2012
In September, remittances from Overseas Filipino Workers (OFW) increased 5.9% over the same month last year to USD 1.8 billion, which was below the 7.6% expansion observed in August (previously reported: +7.8% year-on-year). As a result of the lower annual reading, the trend points downwards, with remittances adding USD 20.9 billion in the last 12 months, a 6.0% expansion over the same period last year (August: +6.3% yoy). According to the Central Bank, "remittances remained resilient on the back of sustained foreign demand for skilled Filipino manpower". Remittances account for approximately 9% of GDP and are an important source of income for many Filipino families. Given its significance to the economy, OFW funds sent from abroad are one of the key drivers of private consumption in the country.