Remittances to anchor current account balance
Full-year numbers set to hit a record-high USD24b.
November overseas foreign workers (OFW) remittances are due this Friday.
According to a report by DBS, another strong showing is expected at 6.9% YoY, with full-year remittances set to hit a record-high USD24b in 2014.
After adjusting for seasonal effects, OFW remittances are expected to continue averaging about USD 2bn in the early part of 2015.
Strong inflows of remittances will continue to ensure that the current account remains in surplus. Current account surplus is likely to remain circa 2% of GDP in 2015, decent enough to limit any external liquidity risk for now.