Philippines: Growth in remittances continues to pick up in August
The reading followed 7.1% growth in July and marked the fastest year-on-year increase in five months.
The overall trend also improved as cash remittances in the 12 months up to August totaled $27.9 billion, slightly up from July’s $27.7 billion and a multi-year high.
August’s 12-month total was 5.6% higher than the same period of the previous year, down from July’s 6.2% increase.
Remittances, which accounted for approximately 9.8% of GDP in 2016, are an important source of income for many Filipino families and thus one of the main drivers of private consumption.
The expansion registered in August was mainly due to growing remittances from the United States, the United Arab Emirates, Singapore and Qatar.
FocusEconomics Consensus Forecast panelists expect private consumption to grow 6.0% in 2018, which is unchanged from last month’s projection. For 2019, the panel expects private consumption to expand 5.9%. ■