Slower 5.9% growth in remittances seen in Nov

MANILA, Philippines - Remittances likely remained robust in November last year although at a slower growth rate than in October, UK-based investment bank Barclays said.

The bank has forecast cash remittances to have grown 5.9 percent in November from the prior year.

“A high base will lead to minor moderation in remittances growth in November,” Barclays noted.

Official November remittances data will be released by the central bank on Wednesday, Jan. 14.

Money sent home by Filipinos abroad went up seven percent to $2.224 billion in October from $2.079 billion in the same month in 2013. This brought the 10-month tally to $19.869 billion, 6.2 percent higher than in the same period in 2013.

The Bangko Sentral ng Pilipinas said cash remittances during the period mainly came from the United States, Saudi Arabia, the United Arab Emirates, the United Kingdom, Singapore, Japan, Hong Kong and Canada.

The sustained demand for Filipino workers abroad has kept the flow of remittances strong, the BSP noted.

Data from the Philippine Overseas Employment Administration showed orders reached 768,741 in the 10 months to October last year. Most of these jobs were for service, production, and professional, technical, and related work in Saudi Arabia, the United Arab Emirates, Kuwait, Taiwan and Qatar.

Remittances support domestic consumption, which remain as the largest driver of the Philippine economy. In 2013, cash remittances amounted to $22.968 billion and made up more than eight percent of the country’s gross domestic product.

The BSP has forecast cash remittances to increase 5.5 percent in 2014 over 2013 levels.