By Joann Villanueva | Philippine News Agency
Cash remittances sent by overseas Filipino workers (OFWs) rose on an annual basis by 3.3 percent to USD3.01 billion in September, the Bangko Sentral ng Pilipinas (BSP) reported Friday.
Remittances coursed through banks in September 2023 amounted to USD2.91 billion.
In the first three quarters of the year, cash remittance reached USD25.23 billion, up by 3 percent from year-ago’s USD24.49 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.”
Rizal Commercial Banking Corporation chief economist Michael Ricafort, in a report, 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 the Christmas season.
However, he noted risk factors that include 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.