Philippines remittances rebound strongly in August
The reading contrasted the previous month’s 5.4% decrease and marked the sharpest growth rate since March 2014.
The overall trend improved slightly, as cash remittances totaled $26.4 billion in the 12 months up to August, up from July’s $26.1 billion.
The reading represented a 2.7% expansion over the same period of the previous year, up from the previous month’s 1.4% rise, and was the highest reading on record. Remittances, which accounted for approximately 9.8% of GDP in 2015, are an important source of income for many Filipino families and thus one of the main drivers of private consumption.
Remittances in August came mainly from the United States, Saudi Arabia, the United Arab Emirates and Singapore.
FocusEconomics Consensus Forecast panelists expect private consumption to grow 6.5% in 2016, which is unchanged from last month’s projection.
For 2017, the panel expects private consumption to expand 6.0%, which is up 0.1 percentage points from last month’s forecast. ■