BSP optimistic remittance from OFWs to increase this year

A logo of Bangko Sentral ng Pilipinas (BSP) is seen at their main building in Manila, Philippines March 23, 2016. (Photo: REUTERS/Romeo Ranoco/File Photo)
A logo of Bangko Sentral ng Pilipinas (BSP) is seen at their main building in Manila, Philippines March 23, 2016. (Photo: REUTERS/Romeo Ranoco/File Photo)

Remittances from overseas Filipino workers (OFWs) for the first six months of the year were at $17.1 billion, or 2.8% higher compared to last year’s $16.62 billion, data from the Bangko Sentral ng Pilipinas (BSP) show, as economies of several countries with Filipino expatriates begin to recover.

The same data show that in June alone, personal remittances – the total amount of net compensation of workers, net transfers, and personal transfers from household to household – grew by 4.4%, with this year clocking in at $3.1 billion from $2.94 billion in the same month last year, the highest level in six months.

“The increase in personal remittances in June 2022 was due to remittances sent by land-based workers with work contracts of one year or more, and sea- and land-based workers with work contracts of less than one year,” said the BSP in a statement.

The BSP also record a 4.4% increase in cash remittances through banks, from June 2021’s $2.64 billion to this year’s $2.75 billion, with the biggest transfer recorded in December 2021 at $2.99 billion.

“The expansion in cash remittances in June 2022 was due to the growth in receipts from land-based and sea-based workers,” said the central bank.

Meanwhile, for the first semester, cash remittances recorded a 2.9% growth from $14.92 billion to $15.35 billion.

Cash remittances from OFWs mainly came from the United States, Saudi Arabia, Japan, Qatar, and Singapore.

BSP is optimistic that this trend of sustained growth will continue, as the countries hosting OFWs are easing restrictions and reopening their borders to more and more workers coming into their countries.

Last year’s personal and cash remittances grew by 5.1% to unprecedented levels of $34.98 billion and $31.42 billion respectively, while for this year, it is expected to increase by 4% more.

Marvin Joseph Ang is a news and creative writer who follows developments on politics, democracy, and popular culture. He advocates for a free press and national democracy. Follow him on Twitter at @marvs30ang for latest news and updates.

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