Cash remittances from overseas Filipino workers (OFWs) rose 2.7 percent in October 2024 from a year ago, the Bangko Sentral ng Pilipinas (BSP) said Monday.
Data from the BSP showed that cash remittances coursed through banks amounted to $3.08 billion in October, the highest in three months. It was also higher than $3 billion recorded in October 2023.
The BSP said the expansion was seen in remittances from both land-based and sea-based workers.
This brought total cash remittances in the first 10 months to $28.30 billion, up by 3 percent from $27.49 billion registered a year ago.
Meanwhile, personal remittances which cover cash sent through banks and informal channels as well as remittances in kind, also rose 2.7 percent to $3.42 billion in October 2024 from $3.33 billion seen in the same month last year.
The total personal remittances in the first 10 months also increased 3 percent to $31.49 billion from $30.57 billion a year earlier.
The BSP said the growth in cash remittances from the United States, Saudi Arabia, Singapore and the United Arab Emirates contributed mainly to the increase in remittances from January to October.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the risk of economic slowdown or even recession in the US, the world’s largest economy, could also lead to a slowdown in remittances amid slower global trade/exports, investments/FDIs, employment and other business/economic activities.
“Nevertheless, the continued/sustained year-on-year growth in OFW remittances in recent months may also reflect faster economic recovery/rebound in some major host countries for OFWs around the world that has enabled more OFWs to work again, with no more COVID-related restrictions and moving towards greater economic normalcy and led to stronger economic recovery that entailed creation of new jobs, including for OFWs,” Ricafort said.
