The amount of US dollars sent by overseas Filipino workers (OFWs) hit an all-time high after a strong finish in December, according to the Bangko Sentral ng Pilipinas (BSP).
Data released by the central bank showed that personal remittances posted a new record high $36.14 billion in 2022, up 3.6 percent from the previous all-time high of $34.88 billion in 2021.
“The robust inward remittances reflected the increasing demand for foreign workers amid the reopening of economies,” the BSP said in a statement
For the month of December alone, personal remittances grew by 7.5 percent to a record $3.49 billion from $3.3 billion in the same month in 2021 due to higher remittances sent by land-based workers with work contracts of one year or more as well as sea- and land-based workers with work contracts of less than one year.
The full-year 2022 level accounted for 8.9 percent and 8.4 percent of the country’s gross domestic product (GDP) and gross national income (GNI), respectively.
Of the total amount in 2022, the BSP said that cash remittances coursed through banks went up by 3.6 percent to an all-time high of $32.54 billion
The growth in cash remittances from the US, Saudi Arabia, Singapore, Qatar, and the United Kingdom contributed largely to the increase in remittances last year.
In terms of country sources, the US posted the highest share of overall remittances in 2022, followed by Singapore and Saudi Arabia.
For December alone, cash remittances coursed through banks increased by 5.8 percent to a record $3.16 billion from $2.99 billion due to the growth in receipts from land- and sea-based workers.
Remittances usually pick up during the ‘ber” months ahead of the Christmas holidays.
OFWs are unsung heroes as their remittances boost the country’s foreign exchange buffer that help fight external shocks such as the impact of the COVID-19 pandemic.
