The Bangko Sentral ng Pilipinas (BSP) said remittances from overseas Filipino workers (OFWs) inched up by 3.5 percent in January, slower than the above five percent increase recorded during the Christmas holidays.
Data showed personal remittances amounted to $3.07 billion in January, up 3.5 percent versus the $2.97 billion recorded in the same month last year.
“The increase in personal remittances in January 2023 was due to higher remittances sent by 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,” the BSP said.
Remittances sent by land-based workers with work contracts of one year or more increased by 3.9 percent to $2.37 billion from $2.28 billion, while the amount sent home by sea- and land-based workers with work contracts of less than one year grew by 2.1 percent to $630 million from $620 million.
Of the total amount, cash remittances coursed through banks also grew by 3.5 percent to $2.76 billion in January from $2.67 billion in the same month last year.
Cash remittances from land-based workers with work contracts of one year or more rose by four percent to $2.19 billion from $2.1 billion, while remittances from sea- and land-based workers with work contracts of less than one year inched up by 1.8 percent to $580 million from $570 million.
The US remained the major source of remittances in January with a share of 42 percent, followed by Singapore with 7.2 percent, Japan and Saudi Arabia with identical 5.9 percent, United Kingdom with 4.8 percent, and United Arab Emirates with 3.2 percent.
Last year, the BSP missed its four percent growth target for remittances after it grew by only 3.6 percent despite the five percent increases recorded in November and December.
Just the same, personal remittances hit a new record high of $36.14 billion in 2022 and eclipsed the previous all-time high of $34.88 billion in 2021.
Of the total inflow, the central bank said cash remittances coursed through banks also hit a new all-time high of $32.54 billion last year from $31.42 billion in 2021.
For this year, the BSP sees both personal and cash remittances climbing by four percent.
