Remittances grow 3% in March 

Remittances rose 3.0 percent to $2.97 billion in March from $2.89 billion a year earlier, according to a report by Manila Times based on the Bangko Sentral ng Pilipinas (BSP) data.

The increase was attributed to higher remittances from land-based workers with contracts of a year or more and sea- and land-based OFWs with contracts of less than a year.

Month on month, the amount of money sent home from abroad by OFWs also increased by 3.8 percent from $2.86 billion in February.

Year to date, remittances grew to $8.91 billion in the first quarter, 3.0 percent higher than the $8.65 billion posted in the comparable period.

Cash remittances coursed through banks rose by 3.0 percent to $2.67 billion in March from $2.59 billion a year ago. This was also higher than the $2.57 billion recorded in February.

For the first three months of 2023, cash remittances also grew by 3.0 percent to $8.0 billion from $7.77 billion.

"The growth in cash remittances from the United States, Singapore, Saudi Arabia, and the United Arab Emirates contributed mainly to the increase in remittances in the first quarter of 2023," the BSP said in a statement.

The US accounted for the biggest share (41.4 percent) of overall remittances in March, followed by Singapore (7.3 percent), Saudi Arabia (5.8 percent) and Japan (5.1 percent).

Other countries that contributed included the United Kingdom (4.4 percent), UAE (4.2 percent), Canada (3.1 percent), Qatar (2.7 percent), Taiwan (2.7 percent) and Hong Kong (2.5 percent).

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Sought for comment, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the continued year-on-year growth in remittances can be attributed to faster economic recoveries that had provided more opportunities for OFWs.

The rise can also be considered a "bright spot for the Philippine economy in terms of supporting consumer spending."

China Banking Corp. chief economist Domini S. Velasquez noted improving economic outlooks in advanced economies.

"The US looks to be heading for a soft landing with the recession now only expected in Q4 (fourth quarter) and the labor market still robust," she said.

"Meanwhile, the euro area and the UK are now projected to dodge a recession altogether this year," she added.

However, inflationary pressures may prevent OFWs from sending more money home, keeping remittances growth "tepid" over the coming months.