Remittances Hit All-Time High Last December 2022

According to the Bangko Sentral ng Pilipinas (BSP), dollars that were sent by Overseas Filipino Workers (OFW) hit an all-time high last 2022 despite skyrocketing inflation.

BSP data shows that personal remittances went up by 3.6% to a new record high of $36.14 billion back in 2022 from a previous all-time high in 2021 of $36.14 billion.

Personal remittances took up over 8.9% of the country’s gross domestic product (GDP) and 8.4% of the gross national income (GNI).

The BSP has said that “The robust inward remittances reflected the increasing demand for foreign workers amid the reopening of economies,”

“The growth in cash remittances from the US, Saudi Arabia, Singapore, Qatar, and the United Kingdom contributed largely to the increase in remittances from January to December 2022,” BSP adds.

In December 2022 alone, personal remittances increased by over 5.7% to a monthly record of $3.49 billion, which is a jump from $3.3 billion in the same period back in 2021.

For China Bank Chief Economist, Domini Velasquez, the cash remittances stayed strong in December with OFWs that came home for the holidays or sent money.

Velasquez has noted that the increased cost of living in the Philippines could have motivated OFWs to send more dollars back home.

“Host countries also experienced better-than-expected economic conditions. The US, Asia, and the Middle East continue to post brisk economic activities. Meanwhile, although economic conditions were worse in Europe, a slightly warmer winter prevented further spiraling of prices and contributed to a shallower downturn,” said Velasquez.

Source: Philstar