In a report issued yesterday, the think tank noted that remittance growth in the country has slowed steadily over the past decade. “Remittance growth to the Philippines has slowed steadily over the past decade and looks set to remain subdued over the next few years. While weak remittance growth is likely to act as a drag on consumption and investment, overall GDP growth should continue to hold up pretty well,” the firm said. Capital Economics attributes the slowdown in remittance growth to several factors, including the improved peformance of the Philippine economy that encourages more Filipinos to hold on to jobs within the country. Capital Economics said a bigger concern for slowing remittance growth would be its effect on the balance of payments as the country’s current account deficit is expected to widen, weakening the peso.

Source: Philippine Star March 14, 2019 16:00 UTC