Cash remittances from Filipinos working overseas grew 3.3 percent in September 2024 from a year ago, ensuring the steady growth of foreign funds that support consumer spending in the Philippines.
Data from the Bangko Sentral ng Pilipinas show that cash remittances which were coursed through banks reached $3.01 billion in September, up from $2.91 billion posted in the same month last year. It was also higher than $2.88 billion seen in August.
“The growth in cash remittances in September 2024 was due to the growth in receipts from land- and sea-based workers,” the BSP said in a statement.
This brought total cash remittances in the first nine months to $25.23 billion, up by 3 percent from $24.49 billion registered a year ago.
The growth in cash remittances from the United States (US), Saudi Arabia, Singapore and the United Arab Emirates (UAE) contributed mainly to the increase in remittances in January-September 2024.
The US accounted for the largest share of overall cash remittances from January to September, followed by Singapore and Saudi Arabia.
Meanwhile, personal remittances which cover cash sent through banks and informal channels as well as remittances in kind, amounted to $3.34 billion in September, higher by 3.3 percent than $3.23 billion in the same month last year.
The BSP said the expansion in personal remittances was due to higher remittances from land-based workers with work contracts of one year or more and sea- and land-based workers with work contracts of less than one year.
It said that in the first nine months, personal remittances increased 3 percent to $28.07 billion from $27.24 billion.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the risk of economic slowdown or even recession in the US could slow down remittance growth.
“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,” he said.
