OFW remittances post 2-digit growth in May

MANILA, Philippines — Remittances from overseas Filipino workers (OFWs) recorded a double-digit growth for the second straight month in May as deployment continued to accelerate amid the easing of travel restrictions as host countries ramp up COVID-19 vaccination, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said yesterday.

Diokno said personal remittances grew by 13.3 percent to $2.65 billion in May from $2.34 billion in the same month last year. This was the fastest growth rate for personal remittances since the 18.4 percent increase recorded in November 2016.

Personal remittances refer to current transfers in cash or in kind by OFWs, as well as other household-to-household transfers between Filipinos who have migrated abroad and their families in the Philippines.

Diokno said personal remittances from land-based workers with work contracts of one year or more jumped by 16.2 percent to $2.06 billion in May from $1.77 billion a year ago, while the amount sent home by sea-based workers and land-based workers with work contracts of less than one year inched up by 2.7 percent to $532 million from $519 million.

From January to May, the BSP chief said personal remittances went up by 6.6 percent to $13.68 billion compared to last year’s $12.83 billion.

Likewise, Diokno reported a 13.1 percent increase in cash remittances coursed through banks – coming mainly from the US, Malaysia, South Korea, Singapore and Canada – to $2.38 billion in May from $2.11 billion in the same period last year.

This was the fastest growth since the 18.5 percent recorded in November 2016.

The BSP chief said cash remittances from land-based workers surged by 16.2 percent to $1.89 billion from $1.63 billion, while those from sea-based workers inched up by 2.7 percent to $488 million from $475 million.

Year-to-date, he said cash remittances went up by 6.3 percent to $12.28 billion from $11.55 billion in the same period last year.

The US accounted for the bulk, or 40.1 percent, of the total cash remittances in the first five months, followed by Singapore, Saudi Arabia and United Kingdom.

The BSP expects remittances to recover this year with a four percent growth.

Remittances, a major source of foreign exchange, remained resilient despite the massive displacement of OFWs as host countries were affected by the COVID-19 pandemic.

The Overseas Workers Welfare Administration has extended assistance to 592,000 overseas workers who have returned home since the repatriation started in May last year.