OFW remittances up by 2.5% in June, says BSP

MANILA, Philippines, August 24 ------ The Banko Sentral ng Pilipinas recorded a 2.5% increase in personal remittances from overseas Filipino workers (OFW), going from $3.21 billion in June 2024 compared to $3.13 billion in June 2023. This led to a cumulative remittance from January to June 2024 of $18.10 billion, an increase of 2.9% from the same time period in 2023. January to June 2023 had a cumulative remittance of $17.59 billion. “The increase in personal remittances in June 2024 was due to higher remittances sent by 1) land-based workers with work contracts of one year or more and 2) sea- and land-based workers with work contracts of less than one year,” the BSP wrote in a statement.   

From the June 2024 remittances, $2.88 billion were transmitted through banks, which is a 2.5% increase from the $2.81 billion remitted in June 2023. The BSP likewise attributed this hike to the increased receipts from sea and land based workers. Meanwhile, cash remittances grew by 2.9% to $16.25 billion from January to June from the $15.79 billion recorded in the same period in 2023, on a  year-to-date basis. 

The BSP said the numbers mentioned may not add up to the total, as they have rounded up the values. There was a growth in cash remittances from the United States, Saudi Arabia and Singapore. The bulk of OFW remittances came from the US, contributing a total of 40.9%. Singapore-based OFWs contributed 6.9% of remittances while 6% came from Saudi Arabia.  

The BSP recorded the country sources for OFW remittances:  

• US: 40.9%  

• Singapore: 6.9%  

• Saudi Arabia: 6.0%  

• Japan: 5.0% 

• United Kingdom: 5.0% 

• United Arab Emirates: 4.1% 

• Canada: 3.4%  

• Qatar: 2.9%  

• Republic of Korea: 2.8%  

• Taiwan: 2.7%  

Other countries contributed 20.4% of the remaining remittances. Remittances have been a strong a steady contributor to the economy, representing 8.5% of the country's gross domestic product in 2023. 

Source: philstar.com