OFW Remittances Up 2.7% in January

Overseas Filipino workers (OFWs) sent more money back home in January, with personal remittances increasing by 2.7 percent compared to the same period last year, according to data from the Bangko Sentral ng Pilipinas (BSP).

The BSP reported that personal remittances from OFWs reached USD3.15 billion in January, up from USD3.07 billion in January of the previous year. This growth was attributed to higher remittances from both land-based workers with contracts of one year or more and sea- and land-based workers with contracts of less than one year.

Cash remittances coursed through banks also rose by 2.7 percent to USD2.84 billion in January 2024, compared to USD2.76 billion in January 2023. Increased receipts from both land- and sea-based workers contributed to this growth.

Remittances from countries such as the United States, Saudi Arabia, the United Arab Emirates (UAE), and Singapore were cited as key drivers behind the overall increase in cash remittances. The United States remained the top source of remittances, followed by Singapore, Saudi Arabia, Japan, and the United Kingdom.

Rizal Commercial Banking Corporation chief economist Michael Ricafort commented that OFW remittances, consistently among the world's top four, have been crucial for the Philippine economy, amounting to over USD40 billion annually. While he expects modest growth to continue in the coming months to address local economic challenges, Ricafort highlighted potential risks such as inflation and economic slowdowns in host countries that could impact remittance levels.