By Luisa Maria Jacinta C. Jocson, A reporter
FINANCIAL AMOUNTS FROM Overseas Filipino workers (OFW) increased by 2.7% in October, the slowest growth in four months, data from the Bangko Sentral ng Pilipinas (BSP) showed.
Data from the central bank showed that remittances rose to $3.08 billion in October from $3 billion in the same month last year.
The growth rate of remittances has been very weak from the 2.5% recorded in June this year. October also marked the first time in four months that growth fell below 3%.
“The increase was seen in income from land and sea workers,” said the BSP.
Income from land workers increased 3.2% year-on-year to $2.48 billion, while remittances from seafarers increased 0.6% to $602.35 million.
Personal remittances, which include remittances, also rose 2.7% to $3.42 billion in October from $3.33 billion a year earlier.
Income from workers with contracts of one year or more increased 3% to $2.68 billion, while remittances from workers with contracts of less than a year increased 1.3% to $670 million.
In the January-October period, remittances grew by 3% to $28.3 billion from $27.49 billion last year.
As of the end of October, income from land workers increased 3.4% to $22.62 billion, while that from offshore workers increased 1.4% to $5.69 billion.
“The increase in remittances from the United States, Saudi Arabia, Singapore, and the United Arab Emirates contributed significantly to the increase in remittances in January-October 2024,” the BSP said.
The US accounted for 41.2% or the largest share of total remittances in the 10-month period.
This was followed by Singapore (7.1%), Saudi Arabia (6.2%), Japan (4.9%) and the United Kingdom (4.8%).
Other top sources of remittances include the United Arab Emirates (4.3%), Canada (3.5%), Qatar (2.8%), Taiwan (2.8%), and South Korea (2.5%).
Meanwhile, remittances rose 3% to $31.49 billion at the end of October from $30.57 billion in the comparable period last year.
John Paolo R. Rivera, a senior researcher at the Philippine Institute for Development Studies, said the latest data on remittances reflects global uncertainty.
“The first is the global economic uncertainty. “Economic challenges in participating countries, such as inflationary pressure or slow economic growth, may have reduced the income available to OFWs to reduce the amount they can withdraw,” he said.
Political tensions in the top sources of remittances such as the Middle East, Europe and the United States have also affected the flow of remittances, he added.
Mr. Rivera said October usually sees a slow growth in remittances “as OFWs prepare to send large amounts around the holiday season (eg, November and December).”
Meanwhile, the Chief Economist of Rizal Commercial Banking Corp. Michael L. Ricafort said a weak peso during the month “will require OFW remittances to cover the same amount of expenses in pesos, which would lead to a year-on-year growth in OFW remittances.”
The peso depreciated to P58.1 against the greenback at the end of October from P56.03 per dollar at the end of September.
Throughout the year, remittances seem to continue to grow, especially during the holiday season.
“In the coming months, growth may increase in November and December due to the holidays. “The continued demand for OFWs in high-income countries and the reduction in global inflation may support the rebound,” said Mr. Rivera.
On the other hand, Mr. Ricafort cited risk factors such as the Trump administration’s strict immigration policies that could dampen remittances next year.
“Potential protectionist policies by US President-elect Donald J. Trump, who will take office on January 20, 2025, could tighten US immigration laws in an effort to create and protect more jobs for US citizens, thereby slowing OFW money from the US,” he added.
The central bank expects remittances to grow by 3% this year and 2025.
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