Philippine Overseas Remittances Climbed at Fastest in Five Months in June

Remittances sent home by Philippine nationals overseas rose in June at the fastest pace in five months, helping sustain demand for cars, homes and mobile phones.

Money sent home from abroad increased 8.3 percent to $1.62 billion, the central bank said in a statement in Manila today. The funds, which make up about a 10th of the $160 billion economy, grew 6.5 percent in May.

“Remittances continue to fund a large part of consumer growth,” said Emilio Neri, an economist at Bank of the Philippine Islands in Manila. Strong economic growth may be sustained as remittances continue to gain, he said.

That may help President Benigno Aquino meet his pledge to expand the economy by between 7 percent and 8 percent from 2011 to cut poverty and boost incomes. The central bank estimates that money sent home by citizens abroad will increase 8 percent in 2010, more than last year’s 5.6 percent, as the global recovery spurs demand for Filipino workers.

To contact the reporter on this story: Max Estayo in Manila at mestayo@bloomberg.net

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