4 weeks ago
7
Keisha Ta-Asan - The Philippine Star
February 18, 2025 | 12:00am
Data from the BSP showed that personal remittances – the sum of net compensation of employees, personal transfers and capital transfers between households – reached $38.34 billion in 2024, three percent higher than the previous year’s $37.21 billion.
STAR / KJ Rosales, file
In 2024
MANILA, Philippines — The strong finish during the holiday season in December boosted dollars sent home by Filipinos abroad to reach an all-time high of $38.34 billion in 2024, the Bangko Sentral ng Pilipinas (BSP) said.
Data from the BSP showed that personal remittances – the sum of net compensation of employees, personal transfers and capital transfers between households – reached $38.34 billion in 2024, three percent higher than the previous year’s $37.21 billion.
The record-high figure was driven by the $3.73 billion remittances sent in December alone, up by three percent from $3.62 billion a year ago.
John Paolo Rivera, senior research fellow at the Philippine Institute for Development Studies, said the growth in remittances in 2024 was due to the continued resilience of overseas Filipino workers (OFWs) in supporting the Philippine economy.
“Sustained economic recovery in the US, Middle East and Asia Pacific led to higher wages and employment opportunities for OFWs, boosting remittances. Sectors such as healthcare, construction and IT services saw high demand for Filipino workers,” he said.
The weaker peso against the dollar in previous months also increased the monetary value for remittances, prompting migrant Filipinos to send more money home.
“December saw a seasonal uptick in remittances as OFWs sent additional funds for holiday-related expenses and family support. The adoption of digital remittance platforms made transfers faster and cheaper, encouraging higher remittance flows,” Rivera said.
As such, the 2024 remittances accounted for 8.3 percent of the country’s economy and 7.4 percent of gross national income.
On the other hand, cash remittances coursed through banks also improved by three percent to $34.49 billion in 2024 from $33.49 billion in 2023. The expansion in cash remittances was due to the growth in receipts from land and sea-based workers.
As to overall remittances last year, the US topped the list with a share of 40.6 percent, followed by Singapore with 7.2 percent and Saudi Arabia with 6.4 percent. Other top sources include Japan, the United Kingdom, United Arab Emirates, Canada, Qatar, Taiwan and South Korea.
Rivera said remittances would likely remain a stable growth driver of the Philippine economy.
“Continued overseas labor demand, particularly in healthcare, tech and skilled trades as well as more favorable exchange rates could encourage higher remittance volumes,” he said.
He also said that government and labor deployment policies could open new job markets. But this could be disrupted by geopolitical tensions or economic downturns in host countries.
“Stronger peso in 2025 (if BSP cuts rates) may reduce the incentive for higher remittance transfers,” Rivera said.
“Overall, remittances are expected to maintain modest growth in 2025, barring major economic disruptions. The steady inflows will continue to support household spending, helping drive consumption-led growth,” he added.
