Economic Highlights (Philippines) – 16/04/2014

Overseas Remittances Moderated In February

u  Philippines’ cash remittances from overseas foreign workers (OFW) moderated by 5.6% y-o-y to USD1.796bn in February 2014, after expanding by 5.9% in January and 10.0% in December 2013. February’s figure came in below the median estimate of +7.5% y-o-y and marked the slowest pace of expansion in 11 months, signaling a slow start to the year amid base effects and due to the slight strengthening in the peso.

u  The moderation in February’s OFW cash remittances was reflected in the easing trend of transfers from land-based workers but was partly offset by a pick-up in remittances from sea-based workers. At the same time, the moderation in February was led by a slowdown in remittances from the US and a further decline in cash transfers from Europe. These were, however, partly mitigated by a pick-up in remittances from Asia, Middle East and Oceania region. This will likely help to support consumer spending in the country.

u  Going forward, the ongoing demand for skilled OFW workers will continue to contribute to the steady flow of remittances. Likewise, the continued efforts of bank and non-bank remittance service providers to expand their international and domestic market coverage through tie-ups and establishment of remittance centers abroad to capture a larger share of the global remittance market provided support to the sustained flow of remittances.

This message is intended only for the use of the person(s) to whom it is addressed and may contain information that is privileged or otherwise protected from disclosure. If you are not the intended recipient you are hereby notified that any use, review, disclosure or copying of this message and the information it contains is prohibited. If you receive the message in error, please notify the sender by reply e-mail and discard all its contents.   Thank You.