Remittances rose for the 28th straight month, supporting the growth of household spending and the general economy amid the elevated inflation, data from the Bangko Sentral ng Pilipinas show.
The BSP said Monday cash remittances rose 2.8 percent in May to $2.49 billion from $2.43 billion in the same month last year, driven by the growth in receipts from land- and sea-based workers.
Money from Filipinos working overseas have been growing year-on-year since January 2021 when it slightly dropped 1.7 percent.
Cash remittances in the first five months of 2023 reached $12.98 billion, or 3.1 percent higher than $12.59 billion a year ago.
“The growth in cash remittances from the United States, Singapore, and Saudi Arabia contributed mainly to the increase in remittances in the first five months of 2023,” the BSP said in a statement.
The US posted the highest share of overall remittances during the period, followed by Singapore, Saudi Arabia and Japan.
Personal remittances, which include non-cash items, amounted to $2.78 billion in May, also up 2.9 percent from $2.70 billion a year earlier.
“The increase in personal remittances in May 2023 was due to higher 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,” the BSP said.
Personal remittances in the first five months went up by 3.1 percent to $14.46 billion from $14.02 billion a year ago.
Cash remittances rose 3.6 percent to a record $32.54 billion in 2022 from $31.42 billion in 2021 on sustained demand for skilled Filipino workers overseas. The full-year remittances growth missed the official target of 4 percent set by the BSP.
Studies showed that remittances to the Philippines were the fourth largest in the world after those going to India, China and Mexico.
The Philippines is among the biggest suppliers of nurses around the world, accounting for at least 20 percent of the total. It is also the main supplier of seafarers worldwide, accounting for about 20 percent to 25 percent of the global tally.
The deployment of OFWs has become more diversified over the years to include more countries.
The BSP expects remittances to grow by 3 percent in 2023.
Remittances support the country’s balance of payments and play a significant role in the stability of the foreign exchange rate.
It also drives the expansion of various sectors such as banking, real estate, transportation, retail and services in the Philippines.