Philippines' resilient remittances to complement continued recovery

We forecast Philippines' remittances to grow 5.4% in 2022 following a 4.9% increase in 2021. A robust outlook for remittances underpins our above-trend GDP growth forecast of 7.5% and 7% in 2022 and 2023 respectively.
What you will learn:

  • Remittances account for more than 10% of private consumption and robust inflows should boost household spending, and also bolster the recovery in residential investment.
  • We also expect remittances to help limit the current account deficit.
  • However, there are notable downside risks to our outlook, including another global Covid outbreak and prolonged supply chain disruptions. In particular, downside risks to US growth – the Philippines’ biggest remitter – need to be monitored closely.

Topics: GDP, South East Asia, Philippines, APAC, Remittance

Philippines resilient remittances to complement continued recovery report