MANILA, Philippines - Remittances from Filipinos overseas are expected to remain robust as Christmas nears, the Bangko Sentral ng Pilipinas (BSP) said.
“Directionally, in the last quarter of the year, remittances are normally heavier because of the holiday season... so it will continue to be robust,†BSP Deputy Governor Diwa C. Guinigundo told reporters.
Money sent home by Filipinos living and working abroad summed up to $1.927 billion in July, 6.6 percent above the $1.809 billion recorded a year ago.
This brought cash remittances to $12.627 billion in the seven months to July, 5.8 percent higher than the level recorded last year.
This is already faster than the BSP’s five percent target growth for remittances this year, and Guinigundo said the current pace of expansion may continue.
“[The target] has been exceeded at 5.8 percent as of July... [and] probably we can sustain that,†he said.
The central bank has earlier cited the continued demand for Filipino workers abroad as the reason for the continued rise in remittances despite geopolitical tensions or a slowdown in other economies outside the country.
Remittances are one of the main drivers of domestic consumption, which makes up 70 percent of the country’s gross domestic product.
The Philippine economy has expanded by 7.5 percent in the second quarter, the fastest in Southeast Asia. The economy has already grown by 7.6 percent in the first half, above the government’s target of six to seven percent this year.