Personal remittances from overseas Filipinos (OFs) continued to strengthen in September, rising by 3.3 percent to USD3.34 billion from USD3.23 billion in the same month last year, according to the latest data from the Bangko Sentral ng Pilipinas (BSP). The uptick in remittances was primarily driven by higher contributions from both land-based workers with contracts of one year or more and sea- and land-based workers with contracts of less than one year.
The September growth is part of a broader trend, as total remittances from January to September 2024 reached USD28.07 billion, marking a 3 percent increase compared to the USD27.24 billion in the same period of 2023. The data underscores the crucial role of OFs in supporting the Philippine economy.
Of the total personal remittances, cash remittances processed through banks amounted to USD3.01 billion in September, up 3.3 percent from USD2.91 billion in September 2023. Land-based and sea-based workers were again the key drivers of this growth.
Year-to-date cash remittances also rose by 3 percent, reaching USD25.23 billion from January to September 2024, up from USD24.49 billion in 2023. The increase was notably bolstered by strong inflows from the United States, Saudi Arabia, Singapore, and the United Arab Emirates (UAE).
The U.S. remains the largest contributor to cash remittances, followed by Singapore and Saudi Arabia. However, due to how remittance centers route funds through correspondent banks, primarily in the U.S., it can appear that the U.S. is the predominant source of funds.
This positive growth in remittances is not only a testament to the resilience and increasing global mobility of Filipino workers but also a vital factor in the Philippines’ ongoing economic recovery and growth. Remittances continue to play a significant role in sustaining household consumption, which remains a key pillar of the Philippine economy.
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