OFW Remittances Reached USD3.15 Billion In January

Personal remittances from overseas Filipino workers (OFWs) reached USD3.15 billion in January 2024, marking a 2.7 percent increase compared to the same month in the previous year.

The United States, Saudi Arabia, the United Arab Emirates (UAE), and Singapore were identified as major contributors to the increase in remittances during January 2024.

This data was released by the Bangko Sentral ng Pilipinas (BSP), which highlighted that the growth in remittances was primarily driven by increased receipts from both land-based and sea-based workers.

Cash remittances transmitted through banks also saw a 2.7 percent increase, reaching USD2.84 billion in January 2024 compared to USD2.76 billion in the same period last year.

The BSP noted that this growth in cash remittances was attributed to higher receipts from workers in both land-based and sea-based sectors.

The United States, Saudi Arabia, the United Arab Emirates (UAE), and Singapore were identified as major contributors to the increase in remittances during January 2024.

The BSP highlighted that the top sources of remittances for the month were the United States (41.8 percent), Singapore (7.3 percent), Saudi Arabia (6.0 percent), Japan (5.8 percent), and the United Kingdom (4.8 percent).

Michael Ricafort, Chief Economist of Rizal Commercial Banking Corporation (RCBC), emphasized the significant role of remittances from overseas Filipino workers in supporting the Philippine economy.

He noted that OFW remittances have consistently ranked as the fourth largest in the world, following India, Mexico, and China, with an annual amount exceeding USD40 billion.

Ricafort projected continued modest growth in OFW remittances in the coming months, driven by the need for OFW families to cope with higher local prices.

However, Ricafort also pointed out potential risks such as higher inflation and the possibility of an economic slowdown in host countries, which could lead to job losses among OFWs.

These factors could pose challenges to the growth of remittances in the future.

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