Remittance inflows kicked off the year with a 2.7% rise,  $3.15B

Overseas Filipino worker (OFW) remittances saw a 2.7% increase to $3.15 billion in January compared to $3.07 billion a year ago, according to the Bangko Sentral ng Pilipinas (BSP). Remittances through banks alone amounted to $2.84 billion, also up 2.7% from January last year. The growth was mainly driven by remittances from land-based OFWs with contracts of a year or more, as well as sea- and land-based workers with contracts of less than one year.

However, the 2.7% growth in remittances was lower than the 3.5% recorded in the same period last year. Remittances also declined from December 2023, attributed to seasonal factors when OFWs typically send more money home during the holiday season.

The increase in cash remittances at the beginning of 2024 was primarily from the United States, Saudi Arabia, the United Arab Emirates, and Singapore. The US accounted for the largest share (41.8%), followed by Singapore, Saudi Arabia, and Japan.

Rizal Commercial Banking Corp. chief economist Michael Ricafort noted that while remittance growth had slowed down, it still remained a positive indicator for the economy, particularly for consumer spending. However, risks of a slowdown could arise from economic downturns or recessions in countries hosting a significant number of OFWs, potentially leading to job losses.

Despite challenges such as high inflation and a weak global economy, OFW remittances reached a record $37.2 billion in 2023, accounting for about 8.5% of the country’s gross domestic product. Cash remittances totaled $33.5 billion, marking a 2.9% increase from the previous year.

Business News: Remittance inflows kicked off the year with a 2.7% rise,  $3.15B