Remittances from overseas Filipinos hit record $38 billion

Personal remittances from overseas Filipinos hit a record-high of $3.73 billion in December last year, bringing the full-year 2024 data to an all-time high of over $38 billion, the Bangko Sentral ng Pilipinas (BSP) said in a report by Philippine News Agency.

Data released on Monday showed that personal remittances reached USD38.34 billion last year, higher by 3 percent from the USD37.21 billion in 2023.

The BSP said the personal remittances last year is the highest recorded to date and account for about 8.3 percent and 7.4 percent of the country's gross domestic product and gross national income, respectively.

Personal remittances cover cash sent through banks and informal channels, as well as remittances in kind.

The BSP said that of the total personal remittances last year, cash remittances coursed through banks amounted to USD34.49 billion, up from the USD33.49 billion recorded in 2023.

"The growth in cash remittances from the United States, Saudi Arabia, Singapore, and the United Arab Emirates mainly contributed to the increase in remittances in 2024," the BSP said.

The United States continued to be the biggest source of cash remittances last year, followed by Singapore and Saudi Arabia.

In a Viber message, Rizal Commercial Banking Corporation chief economist Michael Ricafort said overseas remittances have been growing consistently at around 3 percent in recent months. 

"OFW remittances have been posting new record highs on a monthly basis, especially in December, the seasonal peak in remittances and conversion to pesos for Christmas holiday-related spending," he said. 

"OFWs and their families have been an important market for many products and services in the economy, including big-ticket items such as homes, vehicles, private school education, investments, among others," Ricafort added.