Philippines: Remittances grow at a solid pace despite global slowdown
September 15, 2011
In July, remittances from Overseas Filipino Workers (OFW) rose 6.1% over the same month last year to USD 1.72 billion, falling below the 7.0% growth recorded in June. On a monthly basis, remittances fell 1.3% (June: +2.9% month-on-month). According to the Central Bank, ?the steady inflow of fund transfers from overseas Filipinos despite the difficult conditions overseas could be explained partly by the sustained demand for 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 a key driver of private consumption. Moreover, the steady flow of remittances supports the local currency.