Remittances reach $ 25.93 billion – Manila Bulletin

Bank transfer remittances reached $ 25.93 billion at the end of October, up 5.3% from the same period last year to $ 24.63 billion, according to data from Bangko Sentral ng Pilipinas (BSP).

In October alone, remittances sent home by Filipino Overseas (OF), formerly known as Filipino Overseas Workers (OFW), increased 2.4% to 2 , 81 billion dollars, against 2.75 billion dollars in the same period in 2020.

(Jansen Romero / File Photo / MANILA BULLETIN)

BSP said remittances increased due to a 2.8% increase in landworker remittances, which stood at $ 2.25 billion. Meanwhile, offshore workers’ remittances edged up 0.6% to $ 565 million.

“Growth in remittances from the United States, Taiwan and Malaysia has largely contributed to the increase in remittances in January-October 2021,” BSP noted. By source country, the United States continues to have the highest share of global remittances at 40.9%, followed by Singapore, Saudi Arabia, Japan, United Kingdom, United Arab Emirates , Canada, Taiwan, Qatar and South Korea. The United States will naturally emerge as the primary source of remittances since most of the correspondent banks used by transfer centers are located in the United States.

“Combined remittances from these top ten countries accounted for 79% of total remittances during the period,” PASB said.

The personal remittances component of IF remittances, on the other hand, only rose 2.4% in October to $ 3.12 billion from $ 3.04 billion in the same period in 2020.

For the 10-month count, personal remittances totaled $ 28.82 billion, up 5.4% year-on-year or $ 27.35 billion.

Land workers with work contracts of one year or more paid $ 2.44 billion in October, up 2.8% from $ 2.37 billion. Remittances from maritime and land workers with employment contracts of less than a year edged up 0.5%, from $ 612 million to $ 615 million.

At the BSP Monetary Council meeting on December 9 where the outlook for the external sector was revised, BSP retained the 6% growth forecast for remittances for 2021. BSP noted that it there is “a constant (and) sustained collection of OF remittances”.

“The outlook is supported by expectations of an increasing demand for foreign workers as the global economy recovers; increasing use of online money transfer services; and the persistent altruistic motivations of Filipinos abroad, ”BSP said last week when it announced revisions to balance of payments figures.

For 2022, remittances are expected to stabilize at 4%.

“Planned improvements in global growth prospects and the further opening of economies as well as the continued massive use of vaccines to prevent the spread of COVID-19 should also continue to support the growth prospects of OF remittances. “Said the BSP.

While remittances are easily captured by the BSP, however, personal remittances are personal transfers from OF as well as capital transfers between households.


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