Philippines’ overseas foreign workers’ remittances reach 7.9%

It’s the highest this year.

Overseas foreign workers’ (OFW) remittances grew 7.9% (YoY) in September, recording the highest nominal amount so far this year. In fact, on seasonally adjusted terms, OFW remittances are at a record-high. For full-year 2014, total OFW remittances are also likely to hit a record-high USD 23bn.

According to a report by DBS, strong OFW remittance growth is highly supportive on two key fronts. On the flows perspectives, expect a sustained boost for the current account balance. 

Total current account surplus for the year is likely to be circa USD 8bn or 3% of GDP. And it is likely to remain hereabouts in 2015. At the same time, the sustained strength in OFW remittances continues to bolster private consumption growth. The 3Q GDP data due next week is likely to confirm this. 

For full-year 2014, private consumption growth is likely to come in circa 5.3% YoY, keeping it to be among the fastest in the region.