Remittances from overseas Filipino workers (OFWs) in 2024 reached a record $38.34 billion, up by 3 percent from $37.21 billion the previous year, data from the Bangko Sentral ng Pilipinas revealed Monday.

In December, remittances also peaked at $3.73 billion, higher by 3 percent compared to $3.62 billion for the same month in 2023.

Of the total remittances figure, cash remittances sent through banks grew by 3 percent to $34.49 billion.

Land-based workers grew cash remittances by 3.7 percent, while those of sea-based workers slightly rose by 0.6 percent.

Most remittances came from the United States, accounting for 41 percent of total remittances, followed by Singapore with 7 percent and Saudi Arabia with 6 percent.

The full-year remittances contributed 8.3 percent to the country's gross domestic product.

Rizal Commercial Banking Corporation chief economist Michael Ricafort attributed the higher growth in remittances to Christmas spending amid elevated domestic inflation and weaker Philippine peso against the US dollar.

"Net increase in the US dollar by about 13 percent versus the peso over the past three years would require the sending of lower amounts of remittances to pay for the amount of expenses in pesos," he said.

The economist, however, noted that prices of goods and services have remained high since 2022, forcing OFWs to still send more remittances.

Inflation accelerated to 2.9 percent in the past two months from 1.9 percent in September last year, driven by higher prices of food, alcoholic drinks, and transport based on data from the Philippine Statistics Authority.

Utilities, clothing, recreation, personal care, and restaurant and hotel services slightly declined by 0.1 percentage point.

Ricafort said stricter immigration policies and higher tariffs on US imports under US President Donald Trump could slow remittances as OFWs face higher inflation in the western country due to possible shortage of raw materials and labor force.

However, the economist said certain professionals might remain safe from Trump's protectionist immigration rules.

"The Philippines has been the world’s biggest source of seafarers and nurses for many years. Remittances are still expected to similarly grow, going forward, also due to the country's demographics," Ricafort said.