OFW remittances near $15 billion as of May 2024 –BSP

MANILA, Philippines — Overseas Filipino workers have so far contributed $14.89 billion (P871,980,735,000) of personal remittances in 2024, the Banko Sentral ng Pilipinas (BSP) said on Monday.  

According to the BSP, $14.89 billion of personal remittances were collected from January to May 2024 — a 3.0% increase from the same time period in from January to May 2023.

For May 2024, OFW’s personal remittances reached $2.88 billion (P168,657,120,000), which is a 3.7% increase from May 2023’s remittances worth $2.78 billion (P162,800,970,000).

The BSP attributed the increase of remittances in May to land-based workers with work contracts of one year or more, as well as sea- and land-based workers with contracts shorter than a year.

Cash remittances through banks are also higher that month, amounting to $2.58 billion (P151,088,670,000). It was a 3.6% increase from $2.49 billion (P145,818,135,000) in May 2023. This was due to a growth in receipts from land and sea based workers.

The largest chunk of the remittances came from the United States, with contributions from the country comprising 40.9% of the Philippine’s OFW personal remittances in 2024 so far.

OFWs from other countries do not reach a 10% share of the cumulative personal remittance. Singapore-based OFWs remitted 7.2%; Saudi Arabia-based OFWs remitted 6.1%, while OFWs from Japan remitted 5.1%.

The BSP explained that OFW remittances bolster economic activities, providing a stable source for the country’s foreign currency reserves.

In 2023, full-year personal remittances from overseas workers reached an all-time high of $37 billion. The BSP said it accounted for 8.5% of the Philippines’ gross domestic product and 7.7% of gross national income.