Overseas Filipinos’ cash remittances grew at a steady pace of $25.226 billion at the end of the third quarter, up by three percent compared to $24.494 billion same period last year, based on Bangko Sentral ng Pilipinas (BSP) data.
The BSP reported Friday, Nov. 15, that cash remittances which are fund transfers transacted via the banking networks, also rose by 3.3 percent to $3.009 billion for the month of September only, versus $2.913 billion in 2023.
For the first nine months, cash remittances by land-based workers totaled $20.14 billion, up 3.4 percent from $19.49 billion in 2023. Sea-based workers also transferred $5.08 billion, higher by 1.4 percent from $5.01 billion last year.
As for personal remittances, the BSP noted that this increased by three percent to $28.072 billion as of end-September from $27.242 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.
For the month of September only, personal remittances went up 3.3 percent to $3.336 billion compared to same time last year of $3.229 billion.
Personal remittances from land-based workers with work contracts of one year or more amounted to $21.8 billion as of end-September, up 3.2 percent from $21.13 billion same time in 2023. Remittances of sea- and land-based workers with work contracts of less than one year also increased by 2.3 percent to $5.61 billion from $5.49 billion.
The BSP said the growth in cash remittances came from overseas Filipinos based in the US, Saudi Arabia, Singapore, and the United Arab Emirates. "In terms of country sources, the US accounted for the largest share of overall cash remittances in January-September 2024, followed by Singapore and Saudi Arabia," it added.
Data showed that for the first nine months of 2024, the US accounted for 41.3 percent of the overall remittances, followed by Singapore with seven percent; Saudi Arabia with 6.2 percent; Japan with 4.9 percent; the United Kingdom with 4.8 percent; and UAE with 4.3 percent.
The US normally appears as the top country source of remittances because of a common practice of remittance centers to course remittances through correspondent banks based in the US.
The BSP continues to expect that for 2024 and 2025, cash remittances will grow by three percent year-on-year. In US dollar terms, cash remittances will likely hit $34.5 billion in 2024 and $35.5 billion in 2025.
The BSP makes projections for annual remittances in terms of cash remittances which are the total value of private income transfers sent back by Filipino overseas workers. It is a subset of personal remittances. Both are sent through formal channels such as banks and money transfer operators and informal networks including relatives, friends and co-workers.
In 2023, cash remittances amounted to $33.491 billion which was 2.9 percent higher than 2022’s $32.539 billion.