Remittances from the overseas Filipino workers (OFWs) reached a record high of $25.1 billion in 2013, which includes the $2.4 billion poured in December alone, according to the Bangko Sentral ng Pilipinas (BSP).
The total cash remittances were higher by 7.6% than the previous year’s $23.35bn.
A huge chunk of the money came from Filipino workers in the US, Saudi Arabia, United Kingdom, United Arab Emirates, Singapore, Canada and Japan.
The central bank said the robust growth of land-based and sea-based workers supported the “sustained” rise in personal remittances during the year.
The data showed that the remittances of land-based workers with work contracts of one year or more grew by 6.1%, while transfers of sea-based workers and land-based workers with short-term contracts went up by 7.8%.
Cash remittances from overseas Filipinos coursed through banks also reached the highest level, hitting $2.2bn in December 2013, a 9.1% increase from the level registered in the same period in 2012.
For the entire 2013, cash remittances posted a 6.4% increase to reach $22.8bn. It exceeded the BSP’s projection of $22.5bn or a 5% growth for the year.
Cash transfers from land-based and sea-based workers grew by 6% and 7.9%, respectively. Cash remittances from land-based workers accounted for more than three-fourths or 77.1% of total cash transfers.
“The solid growth of remittances from OFWs remains supportive of economic activity, with cash remittances accounting for 8.4% of the country’s gross domestic product in 2013,” the BSP said.
The central bank added that remittances remained robust on the back of strong demand for skilled Filipino manpower abroad, particularly in the Middle East.
Furthermore, the continued presence of financial service providers in foreign countries that cater to the various needs of overseas Filipinos facilitated sustained remittance flows.--Source: The Manila Times