Philippines remittances likely to grow in 2016

Philippines November remittances increased by 3.2 percent Y/Y, below market expectations rise of a 3.5 percent. The rise brought year to date remittance growth to 3.6 percent Y/Y, versus 5.7 seen in the previous year. Remittance inflows are supported by steady PHP and stabilization in regional currencies, while inflows from US and Europe continue to under-perform.

November Remittances S.A. dropped 1.9 percent M/M, after witnessing increases in September and October of 7.7 percent and 1.4 percent respectively. The economy's current account surplus is expected to grow in this year, rising to 4.4 percent of GDP from 3.7 percent in 2015.

"We expect remittances to remain supported in December, as workers remit money to their families ahead of the festive season. We continue to forecast 4.0% growth in remittances in 2015, and see remittances climbing 5.0% in 2016." - Barclays