Robust growth seen in OFW remittances
Private sector economists on Wednesday expect robust growth in remittances to the country as China’s reopening after Covid will lift economic prospects for the rest of the region.
They raised the expectation after cash remittances from overseas Filipinos coursed through banks rose 3.5 percent to $3.07 billion in January 2023, data from the Bangko Sentral ng Pilipinas released Wednesday showed.
In a Viber message, China Bank chief economist Domini Velasquez said remittances remained moderately positive as the outlook in host countries improved.
“(The) economic out-turn for the US, UK, and some European countries were better than expected,” Velasquez said.
However, she said the recent fallout in the banking system in the United States might be a risk if it progresses to a full-blown banking crisis.
In another Viber message, ING Bank Manila senior economist Nicholas Antonio Mapa said remittances are likely to grow between 3 to 5 percent this year as Filipinos based abroad continue to send home earnings.
“This could provide a steady stream of income, as well as support the outlook for the peso,” he added.
Data from BSP showed personal remittances from overseas Filipinos reached US$3.07 billion in January 2023, 3.5 percent higher than the $2.97 billion recorded in the same month last year.
“The increase in personal remittances in January 2023 was due to higher remittances sent by 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,” BSP said.
The growth in cash remittances from the US, Saudi Arabia, Japan and Singapore contributed largely to the increase in remittances in January 2023.
Meanwhile, in terms of country sources, the US posted the highest share of overall remittances during the said month, followed by Singapore, Japan and Saudi Arabia.
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