Remittances jump to record USD 34.49B

Cash remittances from overseas Filipino workers (OFWs) hit an all-time high of USD 34.49 billion in 2024, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Money sent home by OFWs through banks rose by 3% to USD 3.38 billion in December from USD 3.28 billion in the same month in 2023. This was the highest-ever monthly level for cash remittances.

This brought the full-year remittance level to a record-high USD 34.49 billion, up by 3% from USD 33.49 billion posted in 2023.

This was in line with the BSP’s 3% remittance growth forecast and its full-year projection of USD 34.5 billion.

“The increase was observed in remittances from both land-based and sea-based workers,” the BSP said.

In December alone, remittances from land-based workers jumped by 3.7% year on year to USD 2.71 billion from USD 2.61 billion.

For the full year, remittances from land-based workers increased by 3.4% to USD 27.55 billion from USD 26.64 billion in 2023.

Meanwhile, money sent by sea-based workers inched up by 0.6% to USD 669.28 million in December and rose by 1.3% to USD 6.94 billion for the full year.

Personal remittances, which include inflows in kind, rose by 3% to USD 3.73 billion in December from USD 3.62 billion in December 2023.

As of end-2024, personal remittances increased by 3% to USD 38.34 billion from USD 37.21 billion in the year prior. This also marked an all-time high for personal remittances.

The remittances accounted for 8.3% and 7.4% of the country’s gross domestic product (GDP) and gross national income (GNI), respectively.

“The growth in cash remittances from the United States, Saudi Arabia, Singapore, and the United Arab Emirates, mainly contributed to the increase in remittances in 2024,” the central bank said.

The US was the top source of cash remittances last year, accounting for 40.6% of the total.

This was followed by Singapore (7.2%), Saudi Arabia (6.4%), Japan (4.9%) and the United Kingdom (4.7%).

Other sources of remittances include the United Arab Emirates (4.4%), Canada (3.6%), Qatar (2.8%), Taiwan (2.7%), and South Korea (2.5%).

“The growth in cash remittances in 2024 reflects the continued resilience of OFWs in supporting the Philippine economy,” John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said.

“Sustained economic recovery in the US, Middle East, and Asia-Pacific led to higher wages and employment opportunities for OFWs, boosting remittances,” he added.

Mr. Rivera said the weaker peso in the last few months of the year also increased the value of remittances sent home.

At end-2024, the peso closed at P57.845 against the dollar, depreciating by 4.28% from its end-2023 finish of P55.37. It also fell to the record-low P59-per-dollar level thrice last year.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the surge in remittances was also due to seasonal factors amid the holidays.

“December saw a seasonal uptick in remittances as OFWs sent additional funds for holiday-related expenses and family support. The adoption of digital remittance platforms made transfers faster and cheaper, encouraging higher remittance flows,” Mr. Rivera added.

For this year, Mr. Rivera said remittances are likely to remain a stable growth driver.

“Continued overseas labor demand, particularly in healthcare, tech, and skilled trades. More favorable exchange rates could encourage higher remittance volumes. Government agreements and labor deployment policies could open new job markets.”

Mr. Ricafort said remittances have been “growing consistently around 3% year on year in recent months and years and still expected to similarly grow, going forward, being demographic based.”

However, global uncertainties stemming from US President Donald J. Trump’s trade policies could weigh on remittances, Mr. Ricafort said.

“Mr. Trump’s threats of higher tariffs and America-first policies could also slow down global trade, investments, employment including OFW jobs, and overall world economic growth,” he said.

Mr. Trump is eyeing to impose reciprocal tariffs across all US imports. This after slapping a 10% tariff on all Chinese imports into the US, which took effect earlier this month.

Mr. Rivera likewise noted that geopolitical tensions and a possible global economic downturn could dampen the growth in remittances.

“Overall, remittances are expected to maintain modest growth in 2025, barring major economic disruptions. The steady inflows will continue to support household spending, helping drive consumption-led growth,” Mr. Rivera added.

The central bank expects cash remittances to grow by 3% this year. – Luisa Maria Jacinta C. Jocson, Reporter