Personal remittances from overseas Filipinos increased by 3.3 percent to $3.2 billion in August from $3.1 billion recorded in the same month of last year as demand for goods and services continued to grow.

The Bangko Sentral ng Pilipinas on Tuesday reported the August level pushed up total remittances in the first eight months to $24.74 billion, higher by 3 percent compared to the same period in 2023.

Most personal remittances in August came from workers with valid contracts for one year or longer at $2.47 billion, while the remaining $670 million came from those with less than one-year contracts.

Cash remittances through banks

Specifically, cash remittances sent through banks in August reached $2.89 billion, up by 3.2 percent from $2.8 billion seen last year.

As a result, such remittances grew to $22.2 billion or by 2.9 percent billion from January to August.

Land-based workers continued to send more funds in August, with 3.2 percent growth in cash remittances year-on-year.

Meanwhile, those of sea-based workers rose by 0.7 percent.

Top country remittances

Top country sources of cumulative remittances were the United States with a 41 percent share, followed by Singapore with 7 percent and Saudi Arabia with 6.1 percent.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the higher remittances levels reflected Filipino households’ stronger consumption of goods and services.

“The continued growth is still a good signal for the overall economy as an important growth driver, especially in terms of consumer spending which accounts for about 70 percent of the Philippine economy,” he said.

The economist said families back home needed more funds to support their children’s schooling, while they also started setting some money aside for the Christmas season.

The continued growth is still a good signal for the overall economy as an important growth driver, especially in terms of consumer spending which accounts for about 70 percent of the Philippine economy.

“Overseas Filipinos’ remittances are still near record highs on a monthly basis in view of the expected seasonal surge in remittances and conversion to pesos during the Christmas season in December, the biggest spending by households in a typical year,” Ricafort said.

Remittances could grow further

He said remittances could grow further, especially if the US dollar weakens against the peso.

Ricafort shared that the US dollar/peso reached 55 to 56 levels in September and was already higher at 56 to 57 levels in most of October from 58.92 on 27 June.