OFW remittances see 3.0% increase, reaching $2.95 billion in February
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by Balikbayan Store
1 min reading time
The Bangko Sentral ng Pilipinas (BSP) reported a 3.0 percent rise in Overseas Filipino Worker (OFW) remittances for February, totaling $2.95 billion compared to $2.86 billion the previous year. Bank transfers alone accounted for $2.65 billion, also showing a 3.0 percent increase from last February's $2.57 billion.
The growth was primarily attributed to land-based OFWs with contracts of a year or more, as well as sea- and land-based workers with contracts of less than one year. These figures mark an improvement from January's 2.7 percent growth rates.
However, despite the increase in percentage, the actual value of both personal and cash remittances in February was lower compared to the previous month, standing at $3.15 billion and $2.83 billion respectively.
Year-to-date figures showed personal remittances up by 2.8 percent to $6.10 billion, while cash remittances rose by the same percentage to $5.48 billion. Notably, the growth in February's cash remittances was primarily driven by flows from the United States, Saudi Arabia, Singapore, and the United Arab Emirates (UAE).
The United States accounted for the largest share of total remittances at 41.4 percent, followed by Singapore, Saudi Arabia, and Japan. Other contributing countries included the United Kingdom, UAE, Canada, Taiwan, Qatar, and Malaysia.
Analysts suggest that seasonal fluctuations and economic headwinds in host countries may have influenced the decline in January's remittances. However, forecasts from the International Monetary Fund (IMF) anticipate global economic improvements, indicating positive employment prospects for Filipinos abroad and steady growth in remittances.
Security Bank Corp. chief economist Robert Dan Roces emphasized the significance of remittances in driving domestic consumption and maintaining foreign exchange stability. ING Manila Bank senior economist Nicholas Antonio Mapa attributed the year-on-year growth to an increase in the number of new OFWs and higher earnings, reinforcing remittances as a vital component of the Philippine economy.
