Overseas Filipino workers (OFWs) sent more money to their relatives here in September, with cash remittances rising 3.3% to $3.01 billion, bringing to $25.23 billion the total cash remittances in the first nine months of 2024 from year-ago’s $24.49 billion.
The Bangko Sentral ng Pilipinas (BSP) reported that remittances coursed through banks in September 2023 amounted to $2.91 billion.
“The growth in cash remittances in September 2024 was due to the growth in receipts from land- and sea-based workers,” the BSP said.
The BSP said inflows from the United States, Saudi Arabia, Singapore and the United Arab Emirates “contributed mainly to the increase in remittances in January-September 2024.”
In a report, Rizal Commercial Banking Corporation chief economist Michael Ricafort said remittances remain among the Philippine economy’s bright spots since they boost consumer spending, which accounts for at least 70 percent of the domestic economy’s output.
He explained that remittances to the Philippines have consistently been the fourth largest in the world after India, Mexico, and China, bolstering domestic expansion.
He expects remittances to increase further in the coming months, citing the usual uptick during Christmas.
However, he noted risk factors, including protectionist policies by US President-elect Donald Trump, who will start office on Jan. 20, 2025; any Federal Reserve rate adjustments; softer Chinese economic growth; and effects of geopolitical developments overseas.
