BSP: Remittances Rise by 3.5% to USD3.1-B in Jan 2023

Overseas Filipino workers (OFWs) continue to play a significant role in the Philippines’ economy as personal remittances from OFWs reached US$3.07 billion in January 2023. This figure is 3.5 percent higher than the USD2.97 billion recorded in the same month last year, indicating a positive growth trend, according to a report by the Bangko Sentral ng Pilipinas (BSP).

The increase in personal remittances can be attributed to the higher remittances sent by both 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. Additionally, the BSP report said that the cash remittances coursed through banks, which increased by 3.5 percent to USD2.76 billion in January 2023 from USD2.67 billion in the same month last year, also contributed to the growth.

The growth in cash remittances from the US, Saudi Arabia, Japan, and Singapore had the most significant contribution to the increase in remittances in January 2023.

Moreover, in terms of country sources, the US held the highest share of overall remittances during the said month, followed by Singapore, Japan, and Saudi Arabia.

Remittances play a vital role in the Philippines’ economy, as they contribute to the country’s foreign exchange reserves and help support household consumption. Furthermore, remittances from OFWs provide a lifeline for many families in the Philippines, especially during difficult times such as the ongoing COVID-19 pandemic. (GFB)