2023 Remittances Reached an All-Time High

Money sent home by Filipinos working abroad hit a record high of $3.6 billion in December, as reported by the Bangko Sentral ng Pilipinas (BSP) on Thursday. This brought the total for the year to an all-time high of $37.2 billion.

The BSP attributed the robust inward remittances to the increased deployment of overseas Filipino workers (OFWs) due to rising demand for foreign workers in host countries. December’s result, up 3.9 percent from the previous year, was driven by higher remittances from both land-based workers with contracts of a year or more and sea- and land-based OFWs with contracts of less than a year.

For the full year of 2023, remittances increased by 3.0 percent compared to 2022, reaching $37.2 billion. These remittances accounted for 8.5 percent and 7.7 percent of gross domestic product (GDP) and gross national income (GNI), respectively.

Cash remittances also saw growth, rising by 3.8 percent to $3.3 billion in December and reaching $33.5 billion for the full year, a 2.9 percent increase from 2022. The growth in cash remittances was driven by flows from countries such as the United States, Saudi Arabia, and the United Arab Emirates.

The United States accounted for the largest share (40.9 percent) of overall remittances for the year, followed by Singapore, Saudi Arabia, and Japan. Other significant contributors included the United Kingdom, the United Arab Emirates, Canada, Qatar, Taiwan, and Korea.

Analysts expect remittances to continue growing steadily in the coming months, supported by steady worker deployment and the economic expansion of host countries. The yearend surge in remittances was anticipated, driven by increased spending during the holiday season. However, they caution that modest growth may continue in the future, influenced by factors such as inflation and global economic conditions.

Business News: 2023 Remittances Reached an All-Time High