Personal Remittances Sent by OFWs in the First Quarter of 2023 Increased to 3%
The Bangko Sentral ng Pilipinas (BSP) data showed that personal remittances from overseas Filipino workers (OFWs) increased by 3% or $2.97 billion in March 2023 compared to the $2.89 billion in March 2022.
In a statement, the BSP noted that the growth was due to remittances from land-based workers with one-year contracts or more, as well as sea and land-based laborers with contracts of less than a year.
Personal remittances in the first quarter of 2023 also grew to 3% or $8.91 billion from the recorded $8.65 billion during the same period in 2022. Moreover, cash remittances from overseas Filipinos (OFs) that went to banks rose 3% or $2.67 billion in March 2023 from $2.59 billion in March 2022.
According to the BSP’s data, the total cash remittances that went to banks for the first quarter of 2023 amounted to $8 billion, which is 3% higher than the $7.77 billion recorded during the same period in 2022.
Cash remittances from the United States (US), Singapore, Saudi Arabia, and the United Arab Emirates (UAE) contributed to the growth of the total profits from OFWs in the first quarter of 2023. Moreover, the US, Singapore, Saudi Arabia, and Japan were the primary contributors to overall remittances during the period in terms of country sources.
China Banking Corp. Chief Economist Domini Velasquez stated that improving economic outlooks in advanced economies most likely drove the growth in remittances.
Velasquez cited, “The US looks to be heading for a soft landing, with [the] recession now only expected in [the] fourth quarter and the labor market still robust. Meanwhile, the euro area and the UK are now projected to dodge a recession altogether this year.”
Velasquez added, “However, persistently high inflation in Europe, especially in the UK, may prevent OFs from sending more remittances back to the Philippines and keep remittance growth tepid over the coming months.”