Overseas Filipinos’ cash remittances totaled $21.581 billion as of end-August, up 2.8 percent compared to same period in 2022 of $20.985 billion, based on Bangko Sentral ng Pilipinas (BSP) data released on Monday, Oct. 16.

Cash remittances are fund transfers coursed through the formal banking system and easily captured by the BSP.

As to personal remittances, this amounted to $24.013 billion as of end-August, which was 2.9 percent higher year-on-year or from $23.343 billion last year. Personal remittances are computed as the sum of an Overseas Filipino’s net compensation and includes personal transfers and capital transfers between households.

The growth in remittances is attributed mainly to the steady amounts of US dollars being sent by Overseas Filipinos, formerly called Overseas Filipino Workers or OFWs, to their supported households in the Philippines.

For the month of August, personal remittances increased by 2.8 percent to reach $3.102 billion from $3.017 billion in the same month last year.

The BSP said the growth in personal remittances was driven by increased remittances from 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. As of end-August, this totaled $18.63 billion and $4.83 billion, respectively, up by three percent and 2.2 percent year-on-year.

Meanwhile, cash remittances went up by 2.7 percent in August to $2.796 billion from $2.721 billion same time in 2022.

The growth in cash remittances was due to increased receipts from both land- and sea-based workers of $17.17 billion and $4.41 billion, respectively, up by 3.1 percent and 1.9 percent year-on-year.

“The growth in cash remittances from the United States (U.S.), Saudi Arabia, and Singapore contributed mainly to the increase in remittances in the first eight months of 2023. In terms of the countries where these remittances originate, the U.S. had the highest share of overall remittances during the period, followed by Singapore, Saudi Arabia,” said the BSP.

Based on the latest Consumer Expectations Survey (CES) of the BSP, which was the third quarter 2023, families that are dependent on an Overseas Filipino member typically use remittances to pay for food, rent and education, and just a little set aside as savings.

The CES said remittances are also used to buy other household needs, also for education, and medical expenses.

The survey, conducted July 3 to 14 in both the National Capital Region and in areas outside of the NCR, included 324 OFW households out of 5,404 household respondents.

About 96.3 percent of OFW households said they spend remittances for food and other household needs while 61.4 percent said they use it to pay for education.

Remittances are also spent on: medical expenses (51.2 percent), savings (37.3 percent), payment of debts (18.5 percent), investments (9.3 percent), and purchase of motor vehicles (9.3 percent).

All these numbers are higher compared to the second quarter CES results.

Across income groups, it was less pessimistic among the low-income group, more pessimistic among the middle-income group, and less optimistic among the high-income group.

The survey is comprised of 38.4 percent middle-income group or those households with monthly earnings of P10,000 to P29,999; 35.9 percent high-income group earning P30,000 and over; and 25.6 percent low-income group with less than P10,000.