Remittances post 4.8% growth in September

Metro Manila (CNN Philippines, November 16) — Filipinos abroad sent home slightly more money in September, latest data from the Bangko Sentral ng Pilipinas showed.

The BSP reported remittances stood at $3.02 billion during the month, climbing by 4.8% from September last year.

This brought total remittances for the nine-month period to $25.69 billion — a 5.7% growth.

Land-based workers with contracts lasting over a year remitted $2.34 billion in September, an increase by 6.2%. Seafarers and land-based workers with short-term contracts sent home $633 million, a 1.7% jump.

The biggest chunk of remittances from January to September came from the United States at 40.8%, said the agency.

Singapore, Saudi Arabia, Japan, the United Kingdom, and the United Arab Emirates were listed by the BSP as other top sources for the period, along with Canada, Taiwan, Qatar and South Korea. They account for 78.9% of total remittances.

Filipino families consider remittances a key source of disposable income. Dollars sent home pay for daily expenses like food, utilities, school fees, and even luxuries of family members — boosting household spending and in turn, economic activity.

Remittances are expected to increase in the fourth quarter, especially approaching Christmas season.

In a note, RCBC chief economist Michael Ricafort said remittances could likewise go up in the months ahead amid global economic recovery further improving especially in overseas Filipino worker host countries.

“Further re-opening of the economies worldwide would present more opportunities for growth in OFW remittances as massive vaccination of many host countries, some of which are nearing herd immunity, would allow the re-opening and greater capacity for many businesses/industries,” he explained.

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