CASH SENT HOME of Overseas Filipino Workers (OFWs) hit a two-month high in May, data from Bangko Sentral ng Pilipinas (BSP) showed.
BSP said in a statement on Monday that cash transfers through banks rose 2.8 per cent to $2.49 billion in May from $2.43 billion a year earlier.
The amount of cash sent home by OFW in May was the highest since March, when remittances reached $2.67 billion.
However, the 2.8% increase in remittances was the lowest in three months since February’s 2.4%.
“The expansion of cash transfers in May 2023 was due to increased earnings of land and sea workers,” BSP said.
Land-based OFWs remitted $1.99 billion in May, up 2.9% from $1.93 billion in the same month last year.
On the other hand, remittances from maritime workers rose 2.4% to $506 million from $494 million a year ago.
“We see continued growth in remittancesFloridaBank of China Corporation Domini S. Velasquez said in a Viber message.
She also noted that improvements in digital banking services and platforms likely encouraged OFWs to send more money home.
for piefirst pieCash transfers in the five-month period were $12.98 billion, up 3.1% year-over-year.
The increase in cash transfers from January to May was mainly driven by inflows from the United States, Singapore and Saudi Arabia.
Nearly half, or 41%, of all remittances came from US workers, followed by Singapore, Saudi Arabia, Japan, United Kingdom, United Arab Emirates, Canada, South Korea, Qatar and Taiwan.
The top 10 countries accounted for 79.5% of remittances gun while pie5 month period.
Meanwhile, personal transfers that includeFloridaIn-kind outflows recorded $2.78 billion in May, up 2.9% from the same period last year.
In the first five months of this year, personal remittances rose 3.1% to $14.46 billion.
Nicholas Antonio T. Mapa, chief economist at ING Bank NV Manila, said remittances are expected to rise by nearly 3 per cent over the remainder of the year.
“continuous and consistent FloridaForeign exchange flows will provide stable support for the Philippine peso over the coming months,” he said.
Mr. Mapa added that the global economic downturn has never led to a drop in remittances, only during the global lockdown.
“Barring unfavorable developments that may refer to these circumstances, we believe remittances will continue. FloridaIt supports demand-side growth while demonstrating a stable source of foreign currency,” he said.
Velasquez said remittance growth would remain moderate over the coming months.
“Resilient labor markets in advanced economiesFloridaHowever, an economic downturn remains a major risk. However, continued recovery in sectors such as tourism will ensure a stable source of income for OFW,” she said.
She noted that increased demand for cruise tourism could boost remittances by some sea-based OFWs.
BSP expects remittances to increase by 3% this year. — Keisha B. Taasan
