The Bangko Sentral ng Pilipinas (BSP) reported a steady increase in remittances from overseas Filipino workers (OFWs), with a 2.5% rise in June 2024 compared to the same month last year. OFWs sent a total of $3.21 billion in June 2024, up from $3.13 billion in June 2023, driven by higher remittances from land- and sea-based workers across the globe.
The United Arab Emirates (UAE) remains a significant contributor, accounting for 4.1% of the total remittances. The UAE, alongside major sources like the United States, Singapore, and Saudi Arabia, played a crucial role in the cumulative remittances of $18.10 billion recorded from January to June 2024, representing a 2.9% increase from $17.59 billion during the same period in 2023.
The BSP highlighted that the increase was fueled by consistent remittances from land-based OFWs with long-term contracts and those with shorter-term contracts working on land and at sea. Of the June 2024 remittances, $2.88 billion was transmitted through banks, marking a 2.5% rise from June 2023.
Cash remittances, which are a key component of the Philippine economy, also saw a 2.9% growth in the first half of 2024, reaching $16.25 billion. The United States remained the largest source, contributing 40.9% of the total, followed by Singapore and Saudi Arabia.
With remittances contributing 8.5% to the Philippines’ gross domestic product in 2023, the consistent flow of funds from OFWs in the UAE and other countries continues to be a vital lifeline for the nation’s economy.
