PERSONAL remittances to the Philippines by Filipinos abroad hit a record $3.73 billion in December, pushing the full-year 2024 total to an all-time high of $38.34 billion, the Bangko Sentral ng Pilipinas (BSP) said.
Filipino remittances in December rose 3 percent from $3.62 billion a year earlier, and the full-year 2024 total also rose 3 percent from $37.21 billion in 2023, BSP data showed.
“The full-year 2024 remittances represented 8.3 percent and 7.4 percent of the country’s gross domestic product and gross national income, respectively,” the BSP said in a statement on Monday.
Remittances from both land-based and sea-based workers accounted for the increases, it said.
Personal remittances are cash and goods sent to the Philippines by Filipinos who live and work abroad, through banks and informal channels.
Of the personal remittances from overseas Filipinos, cash remittances coursed through banks reached $3.38 billion in December 2024, higher by 3 percent than the $3.28 billion posted in December 2023.
On a year-to-date basis, or until end-2024, cash remittances rose also by 3 percent to $34.49 billion in 2024 from the $33.49 billion registered in 2023.
Overseas Filipino Workers (OFWs) and their families are an important market for many products and services in the economy, including big-ticket items such as homes, condominium units, vehicles, private school education and investment, Rizal Commercial Banking Corp. chief economist Michael Ricafort said.
“OFW remittances have been posting new record highs on a monthly basis, especially in December, the seasonal peak in remittances, and conversion to pesos for Christmas holiday-related spending,” the economist said.
US largest source
On record, the United States accounted for the largest share of overall cash remittances last year, followed by Singapore and Saudi Arabia.
The central bank said in an explanatory note, however, the ranking of the sources of remittances is more complicated than what it seems.
“There are some limitations on the remittance data by source. A common practice of remittance centers in various cities abroad is to course remittances through correspondent banks, most of which are located in the US,” the BSP said.
Most money couriers also have their main offices in the US. “Therefore, the US would appear to be the main source of overseas Filipinos’ remittances because banks attribute the origin of funds to the most immediate source,” the BSP said.
Ricafort sees OFW remittances continuing to grow in the coming years.
The Philippines has consistently been the world’s fourth largest (recipient of workers’) remittances in the world after India, Mexico and China. “The country has been one of the world’s biggest sources of manpower for many years,” the economist said.
Challenges ahead
He said US President Donald Trump’s protectionist policies, particularly stricter immigration rules, could weigh on some OFW remittances, especially from the US.
Trump’s threats of higher tariffs and America-first policies could also weigh down global trade, investments, employment, including jobs available to OFWs, and overall world economic growth, he said.
These developments “could also indirectly slow down growth in OFW remittances from other countries around the world,” Ricafort added.
