December 21, 2014

OFW remittances at record high in October

Data from the central bank showed that dollar remittances from overseas Filipino workers hit a record high in October at US$2.22b, up 7% YoY. The central bank traced the growth to steady demand for Filipino manpower and efforts by bank and non-bank remittance service providers to expand their domestic and international networks. The October data brought the 10-month remittance figure to US$19.869b, up 6.2% YoY and outpacing the 5.5% growth target of the central bank for the year.

The weakening peso should encourage overseas Filipinos to send more money especially towards the Christmas season and to help relatives in areas hit by the recent strong typhoon.

The stronger growth in OFW dollar remittances should provide a boost to domestic consumption as this comes amid the peso weakening and easing inflation. This should bode well for consumer companies. - WealthSec