Remittance growth likely rebounds in Feb – Barclays

Remittances growth likely bounced back in February from a six-year low in the previous month, according to UK-based investment bank Barclays.

The bank, in its latest Emerging Markets Weekly, said money sent home by Filipinos working and living abroad could have increased by 10 percent in February from the same month last year.

“Remittance growth likely to rebound strongly following the holiday-related weakness in January,” Barclays said.

Cash remittances in February last year summed up to $1.8 billion, mainly coming from the United States, Saudi Arabia, the United Arab Emirates, the United Kingdom, Singapore, Japan, and Canada.

Official February remittances data is set to be released by the BSP on Wednesday, April 15.

Latest central bank data showed remittances grew only 0.5 percent to $1.14 billion in January from $1.804 billion in the same month last year. This was the slowest pace of growth after the 0.1-percent increase recorded in January 2009.

It should be noted that in the same period last year, Super Typhoon Yolanda-related remittances were likely included in the inflows after the calamity devastated the country in late 2013.

Analysts last year said remittance inflows could surge following the typhoon as Filipinos abroad may have sent more to their families who lost their homes and businesses to the calamity.

In January, most of the remittances were sent from the United States, Saudi Arabia, the United Arab Emirates, the United Kingdom, Japan, Singapore, Hong Kong, and Canada.

Together with non-cash items, personal remittances went up by just 0.2 percent to $2.011 billion in January from $2.007 billion in the same month last year.

The BSP said the continuous flows of remittances abroad reflect the sustained demand for Filipino workers abroad.

Cash remittances last year rose 5.8 percent to a fresh annual peak of $24.308 billion, surpassing the central bank’s 5.5-percent assumption for the period.

Remittances support domestic consumption, the main driver of the Philippine economy. Last year, cash remittances accounted for 8.5 percent of the country’s gross domestic product.