News » FocusEconomics projects stable growth in personal and remittances from OFWs

FocusEconomics projects stable growth in personal and remittances from OFWs

FocusEconomics projected a sustained expansion in private consumption which is boosted by the remittance growth from OFWs.

FocusEconomics’ economist, Massimo Bassetti said that the country’s private consumption would rise by six percent this year before moving to 5.9 percent in 2019.

The latest data from BSP (Bangko Sentral ng Pilipinas) showed a stable growth in personal and remittances from Filipinos working abroad. Personal remittances which include non-cash items both from electronic means and informal channels rose 5.2 percent to $25.72 billion from January to October.

For both 2017 and 2018 BSP has set a 4% growth target for remittances.  According to BSP Deputy Governor Diwa Guinigundo Filipinos abroad took advantage of the high dollar-peso exchange rate which resulted in higher remittances in October.

“Remittances, which accounted for approximately 9.8 percent of GDP in 2016, are an important source of income for many Filipino families and thus one of the main drivers of private consumption,” Bassetti said.

Apart from stimulating consumption, remittances along with the BPO industry and tourism receipts also serve as primary sources of foreign exchange buffer that would help protect the Philippines from external shock.

Read more here.

Start your
journey today

  • Independent
  • Free
  • Transparent

About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO)

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between Philippines outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 900+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.