August remittances rise 7.6%


Posted at Oct 15 2012 06:22 PM | Updated as of Oct 16 2012 02:22 AM

MANILA, Philippines - Remittances rose 7.6$ to $1.8 billion in August, according to data from the Bangko Sentral ng Pilipinas. 

Total personal remittances, which represent the sum of net compensation, household-to-household transfers in cash and kind, and capital transfers of overseas Filipino workers, in the eight months to August totaled $15.28 billion, up 7.9% on year. 

Cash remittances, which help power domestic consumption, is expected to grow 5 percent this year, slowing from the previous year's annual climb of 7.2%. Cash remittances in 2011 reached $20.12 billion.     

Major sources of remittances in August were the United States, Canada, Saudi Arabia, Japan, United Kingdom, Singapore and United Arab Emirates. 

The government is optimistic the country can post higher growth of 5-6 percent this year against 3.9 percent in 2011, with domestic demand expected to stay strong on the back of robust remittances from Filipinos working and living abroad.     

The Philippine central bank kept its key policy rate steady last month, but economists believe that with inflation under control, it may ease policy further before the year ends to support the economy and contain the peso's strength.