June remittances rise to new peak

Posted at 08/15/2012 3:04 PM | Updated as of 08/15/2012 10:26 PM

MANILA, Philippines - Remittances from overseas Filipinos  reached $1.81 billion in June, up 4.2% year-on-year, the Bangko Sentral ng Pilipinas said.

In the first half, remittances reached $10.1 billion, rising 5.1% from a year ago.

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 first half of the year totaled $11.27 billion, up 5.3% 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 percent. Cash remittances in 2011 reached $20.12 billion.   

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

The central bank noted a decline in cash remittances from most countries in the euro area, like Greece, Ireland, Spain, Portugal, because of the sovereign debt and banking crisis.

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.