BSP: OFW remittances could hit $37 billion in 2023

Metro Manila (CNN Philippines, November 17) – An official of the Bangko Sentral ng Pilipinas (BSP) said that remittances from overseas Filipino workers (OFWs) could hit $37 billion in 2023.

According to the BSP, OFWs typically remit more money to the country over the holiday season and the “ber months.” There also tends to be an uptick around July, before the start of the school season.

“Last year, for the full year of 2022, we received $36.1 billion in remittances. This year, we project as of June that remittances will grow by about 3%, that will be more than 3.13%,” Redentor Paolo Alegre, senior director of the Department of Economic Statistics at the BSP, told CNN Philippines’ The Exchange on Friday

“As things are picking up now, we believe remittances may even hit $37 billion, on a more positive note,” he added.

The remittances in 2022 was an all-time high and accounted for 8.9 percent and 8.4 percent of the country’s Gross Domestic Product (GDP) and Gross National Income (GNI). It was a 3.6% increase compared to the $34.8 billion recorded in 2021.

Figures from the Philippine Statistics Authority from April to September 2022 showed that out of 1.96 million OFWs, 41.7% remitted between ₱40,000 and ₱100,000, while 20.7% remitted over ₱100,000.

The average remittance sent by an OFW was pegged at ₱111,000 over the same period.

However, OFWs have to pay around 5% in transaction fee to remit money back to the country.

BSP Gov. Eli Remolona said the central bank is looking to gradually bring it down to only 1%.