Personal remittances from overseas Filipinos (OFs) grew by 3.5 percent to reach USd3.12 billion in November 2024, up from only USD3.02 billion in the same month last year, according to data from the Bangko Sentral ng Pilipinas (BSP). The increase was driven by higher remittances from both land-based and sea-based workers, underscoring the sustained financial support provided by OFs to their families back home.
The growth in November contributed to a year-to-date total of USD34.61 billion in personal remittances from January to November 2024, representing a 3 percent increase compared to the USD33.59 billion registered during the same period in 2023. This uptick is aligned with the BSP’s projected 3 percent growth for the full year, highlighting the continued resilience of remittance inflows amid global economic challenges.
Of the total personal remittances, cash remittances coursed through banks amounted to USD2.81 billion in November 2024, marking a 3.3 percent year-on-year increase from USD2.72 billion in November 2023. On a cumulative basis, cash remittances for January-November 2024 reached USD31.11 billion, up 3 percent from USD30.21 billion in the same period last year. The BSP forecasts that cash remittances will continue to grow by 3 percent for the full year.
The increase in remittances was notably influenced by growth from key remittance-sending countries, particularly the United States, Saudi Arabia, Singapore, and the United Arab Emirates (UAE). The United States, which remains the largest source of cash remittances, was followed by Singapore and Saudi Arabia in contributing to the rise in inflows during January-November 2024.
The BSP report also acknowledges that a significant portion of remittances are processed through correspondent banks, particularly those located in the U.S., which can skew the attribution of funds to the U.S. despite originating from other countries. However, this practice continues to support the Philippines’ stable inflow of foreign currency, reinforcing its critical role in maintaining the nation’s economic stability.
The continued growth in remittances remains a vital contributor to the economy, supporting household consumption, boosting foreign exchange reserves, and providing financial stability to millions of families. Remittances play an essential role in sustaining domestic demand and mitigating economic vulnerabilities, especially in times of global uncertainty. With a full-year growth target of 3.0%, the remittance sector is poised to remain a cornerstone of the Philippine economy in 2024 and beyond.
