MONEY sent home by overseas Filipinos in October 2017 grew 8.4 percent to $2.275 billion from $2.099 billion a year ago, the fastest in seven months, fueled by the increase in remittances from both land- and sea-based workers, Bangko Sentral ng Pilipinas said Friday.
Data showed the top countries that contributed to the increase in total cash remittances during the month were the United Arab Emirates and United States.
The amount brought cash remittances in the first 10 months to $23.056 billion, up 4.2 percent from $22.124 billion a year ago.
“The increase was boosted by the increase in remittances from land-based workers and sea-based workers, which both grew by 4.2 percent compared to the level posted a year ago,” Bangko Sentral said.
Personal remittances, which include non-cash items, also posted their fastest expansion in seven months since March by 9.7 percent to $2.552 billion from $2.326 billion on year. The figure brought personal remittances in the first 10 months to $25.717 billion, up 5.2 percent from $24.434 billion a year ago.
Personal remittances from land-based workers with work contracts of one year or more including other household-to-household transfers recorded an increase of 4.2 percent, while those from sea-based and land-based OFWs with work contracts of less than one year increased 4.1 percent from January to October.
Bangko Sentral in June kept a conservative 4-percent growth target for remittances this year amid the improving trade and rosy outlook of the global economy.
Bangko Sentral Deputy Governor Diwa Guinigundo said the 4-percent expansion would translate into a record $28 billion in total value of remittances from $26.9 billion posted in 2016.
Bangko Sentral in December last year projected remittances to grow by 4 percent in 2017. The regulator reviews the growth target for remittances, alongside other economic data, twice yearly in May and November.
Remittances along with business process outsourcing receipts account for around $50 billion in inflows annually and have been the source of the country’s strong external payments position.
The $26.9-billion total value of remittances last year accounted for around 10 percent of the gross domestic product, which grew 6.9 percent, one of the fastest in the region.
Guinigundo said “global growth this year is seen at 3.5 percent, higher than the 3.1 percent in 2016,” which would augur well for the sustained demand for Filipino workers abroad and eventually the flow of remittances back home.