Personal remittances from overseas Filipinos grew by 2.9 percent to $33.6 billion in the first 11 months last year compared to the same period in 2022, the Bangko Sentral ng Pilipinas reported.

This reflected a similar 2.9 percent growth in November’s personal remittances at $3 billion.

Cash remittances

Specifically, cash remittances sent through banks rose by 2.8 percent to $2.7 billion in November year-on-year.

On a cumulative basis, these remittances amounted to $30.2 billion, also 2.8 percent higher than the 2022 level.

Land-based workers posted higher growth in cash remittances at 3.1 percent compared to sea-based workers’ 1.9 percent.

The bulk of overall remittances came from the United States with 41.2 percent share, followed by Singapore (6.9 percent) and Saudi Arabia (6 percent) as of end-November 2023.

Stable economic growth

Credit analyst S&P Global Ratings said the Philippines will gain stable economic growth in the next two years backed by  robust household consumption that is partly funded by “sizeable” remittance inflows which figure at $31 billion minimum each year.

“Solid household and corporate balance sheets, and sizable remittance inflows underpin the Philippines economy’s positive medium-term trajectory. Ongoing efforts to improve the business climate should also support growth in economic productivity,” S&P said.

Economists said full-year remittances likely increased further to three percent or higher as more overseas Filipinos tend to support increased activities for celebrating Christmas back home.

However, to also increase savings among Filipinos, the BSP aims to reduce transfer fee for remittances to 2 percent of the amount to be sent from the current 5 to 6 percent.

BSP Governor Eli Remolona Jr. said that is lower than the European target of three percent.