Philippines' remittance growth to slow further
In the first four months of 2012, remittance growth was a moderate 5.4%.
DBS Group Research said:
Remittance growth should slow further this year from 7.2% in 2011. In the first four months of this year, remittance growth was a moderate 5.4% compared to the same period last year.
Unsurprisingly, remittances to Europe were down by 5.9%, but resilient numbers from Asia (11.8%) and the US (11.1%) helped to prop up the overall figure. Notably, in seasonally-adjusted terms, the absolute value has actually been declining since November.
With signs of weakness in the US economy, the persistence of the Eurozone debt crisis and the threat of a hardlanding in China looming, the prospect of a synchronized economic slowdown is real and this will have an impact on remittance. However, given its display of resilience in the past, we still expect remittance growth of around 5% this year.
Accordingly, there will not be as much of a boost to private consumption on this front. Instead, in the event that a sharp external slowdown occurs, it is encouraging that the central bank has the leeway to further lower rates and the government has the fiscal space to embark on fiscal stimulus.
This signals chemical firm Eastman’s commitment to its Asian clients.
Find out how the drastic changes in the industry and the “democratisation of information” have helped Saxo Bank succeed.
One of EASB’s full-time lecturer, Willard Tan, shares his incredible educational journey with EASB and how he gives back to his alma mater.
.jpg "Simon Tan")
