Money sent home by Filipino workers abroad increased 18.5 percent in November 2016 from a year ago, the fastest pace in eight years, Bangko Sentral ng Pilipinas said Monday.
Data from Bangko Sentral showed remittances hit $2.2 billion in November, up from $1.9 billion a year ago. It was also higher than $2.1 billion in October.
The growth in cash remittances in November was the fastest since the 24.6-percent increase recorded in July 2008. Bangko Sentral said the remarkable growth was backed by the pre-holiday season rush and the improving global economic conditions.
“The improving global economic conditions, particularly in the US, may have contributed to the overall growth in remittances,” Bangko Sentral Governor Amandto Tetangco Jr. said in a statement.
The November expansion was a recovery from the 3-percent drop in October.
Cash remittances in the first 11 months reached $24.3 billion, up by 5.2 percent from $23.13 billion a year ago.
Personal remittances, which include non-cash items, also jumped 18.5 percent in November to $2.4 billion and brought the 11-month tally to $26.9 billion, up 5.1 percent from $25.582 billion in the same period in 2015.
“The increase in personal remittances was driven largely by the 7.8-percent expansion in transfers from land-based workers with work contracts of one year or more to reach $20.9 billion,” Tetangco said.
“This made up for the 3.6-percent decline in remittances from sea-based and land-based workers with work contracts of less than a year totaling $5.5 billion,” he said.
The bulk of cash remittances came from the United States, Saudi Arabia, the United Arab Emirates, Singapore, the United Kingdom, Japan, Kuwait, Hong Kong and Qatar.
Remittances fuel private consumption and serve as a backbone of economic growth.
DBS Bank of Singapore said earlier remittances would likely reach $27 billion this year, a decent 5.5-percent increase from 2015.
“Strong remittances have been a factor that contributes to the 7-percent average in private consumption growth thus far this year. The government is a little more cautious on the outlook for remittances next year. This is understandable given what is happening in key markets for Filipinos working overseas,” DBS said.