Cash remittances reached an all-time high of $34.49 billion in 2024, up by $1 billion, or 3 percent, from $33.49 billion registered in 2023, the Bangko Sentral ng Pilipinas (BSP) said Monday.
The BSP said in a statement that cash remittances coursed through banks reached $3.38 billion in December 2024, up by 3 percent from $3.28 billion posted in December 2023.
It said 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 that in terms of country sources, the US accounted for the largest share of overall cash remittances 2024, followed by Singapore and Saudi Arabia.
It acknowledged some limitations on the remittance data by source. A common practice of remittance centers in various cities abroad is to course remittances through correspondent banks, most of which are located in the US.
Remittances coursed through money couriers cannot be disaggregated by actual country source and are lodged under the country where the main offices are located, which, in many cases, is in the US.
“Therefore, the US would appear to be the main source of OF remittances because banks attribute the origin of funds to the most immediate source. The countries are listed in order of their share of cash remittances, i.e., from highest to lowest,” the BSP said.
Meanwhile, personal remittances which include cash and non-cash items, also reached a record high of $3.73 billion in December 2024, a 3 percent increase from $3.62 billion seen in December 2023.
The increase was observed in remittances from both land-based and sea-based workers.
Cumulative remittances also reached a record high of $38.34 billion in 2024, higher by 3 percent than the $37.21 billion recorded in 2023.
The full-year 2024 remittances represented 8.3 percent and 7.4 percent of the country’s gross domestic product (GDP) and gross national income (GNI), respectively.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp. said OF emittances 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.
“OFWs and their families have been an important market for many products and services in the economy, including big-ticket items such as homes/condos, vehicles, private school education, investments, among others,” said Ricafort.
Ricafort warned, however, that the protectionist policies by US President Donald Trump, particularly the stricter immigration rules, could weigh on some OFW remittances especially from the US.
“Trump’s threats of higher tariffs and America-first policies could also slow down global trade, investments, employment including OFW jobs and overall world economic/GDP growth, thereby could also indirectly slow down the growth in OFW remittances from other countries around the world,” Ricafort said.
