Personal remittances from overseas Filipino workers (OFW) went up by 2.7 percent in January this year, the Bangko Sentral ng Pilipinas (said).

Data released by the BSP over the weekend showed that personal remittances from overseas Filipinos amounted to USD3.15 billion in January from USD3.07 billion in the same month last year.

“The increase in personal remittances in January 2024 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,” the BSP said.

The BSP said cash remittances coursed through banks increased by 2.7 percent to USD2.84 billion in January 2024 from USD2.76 billion a year ago.

The growth in cash remittances in January 2024 was primarily due to increased receipts from both land- and sea-based workers.

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

Top sources of remittances during the month include the United States (41.8 percent), Singapore (7.3 percent), Saudi Arabia (6.0 percent), Japan (5.8 percent), and United Kingdom (4.8 percent).

“The Philippine remittances from overseas workers have consistently been the fourth largest in the world after India, Mexico, and China, amounting more than USD40 billion per year, a sign of resilience and has always been a major growth driver for the Philippine economy for many years,” Rizal Commercial Banking Corporation chief economist Michael Ricafort said in a comment on Saturday.

Ricafort said in the coming months, modest growth in OFW remittances could still continue as OFW families still need to cope up with relatively higher prices locally that would require the sending of more remittances.

He, however, noted that offsetting risks factors include higher inflation and a possible economic slowdown in host countries which could lead to some jobs losses. (PNA)