FASTER GROWTH IN OFW REMITTANCES SEEN

Remittances from overseas Filipinos likely picked up and rose by 3 percent year-onyear in March, doubly faster than the growth rate seen in February, according to ING Bank.

The Bangko Sentral ng Pilipinas (BSP) will announce official data today (May 16).

“Remittances have been a consistent source of foreign currency, and should offset the widening trade deficit to some extent,” the Netherlands-based bank said in a commentary.

In February, the growth rate of personal remittances slowed compared with January to 1.2 percent yearon-year to reach $2.79 billion from $2.76 billion, as yet another wave of COVID-19 infections prompted strict mobility restrictions.

Earlier this week, Economic Planning Secretary Karl Chua cited the continued growth in remittances as having helped achieve a greater-than-expected 8.3-percent growth in first-quarter gross domestic product.

Last March, the BSP said the requirements of other countries for doctors, health workers, skilled builders and housekeepers as well as an increased use of digital financial services are boosting overseas deployment of Filipino workers and shoring up remittances to the Philippines.

Based on the latest forecasts by the BSP, remittances from overseas Filipinos are expected to grow by 4 percent yearly—not only in 2022 but also in 2023—consistent with long-term trends.

In 2021, personal remittances reached a new record-high of $34.9 billion, of which 90 percent or $31.9 billion was sent through banks. This grew by 5.1 percent from $33.2 billion in 2020, after shrinking by 0.8 percent from $33.5 billion in 2019.

Over the past 10 years, personal remittances grew by an average of 5.7 percent yearly.