go through Luisa Maria Jacinta C. Josen, Senior Reporter
Money sent home by immigrants Filipinos rose 2.6% in March Starting a year ago, Sentral Ng Pilipinas (BSP) in Bangkok said Thursday, although it was the slowest growth in nine months.
Starting from $2.74 billion a year ago, cash remittances from overseas Filipino workers (OFWs) through bank campuses reached $2.81 billion (P156.8 billion).
Remittances from land-based workers rose 3.1% to $2.22 billion, while money sent by offshore workers increased by 1% to $595 million.
In the first quarter, cash remittances rose 2.7% to $8.44 billion. Money sent home by land-based workers jumped 3.2% to $6.74 billion, while remittances from offshore workers rose 1% to $1.7 billion.
“The growth in cash remittances in the United States, Singapore, Saudi Arabia and the United Arab Emirates (UAE) was the main driver of the overall increase in remittances from January to March,” BSP said.
The United States was the highest source of remittances in the first quarter, accounting for 40.7% of the total. Next are Singapore (7.6%), Saudi Arabia (6.2%), Japan (4.9%), the UAE (4.6%), the United Kingdom (4.4%), Canada (3.1%), Qatar (2.8%), Taiwan (2.8%) (2.8%) and Hong Kong (2.7%).
“The cash remittances in March and the first quarter were mainly due to the ongoing demand for Filipino labor, especially in health care, engineering and domestic services,” said John Paolo R. Rivera, a senior researcher at the Philippine Development Institute, in a Viber message.
He also cited seasonal factors such as Lenten breaks and school-related expenses, which could cause remittances in the quarter.
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said the continued growth of remittances is “as a highlight of the overall economy, as a key growth driver, especially in consumer spending.”
BSP data shows that individual remittances, including types of inflows, rose 2.6% in March to $3.13 billion from a year ago.
Personal remittances for workers with one-year or more contracts climbed 3% to $2.4 billion during the month, while remittances for workers with less than one-year contracts rose 1.4% to $660 million.
Personal remittances last quarter rose 2.7% from a year ago to $9.4 billion.
Ruben Carlo O. Asuncion, chief economist at United Bank of Philippines, said remittances could rise 2.5% to 3% this year despite external winds. “We believe remittances are strong and we still expect strong growth.”
The central bank expects cash remittances to grow by 2.8% this year.
“Despite global uncertainty, remittances have shown resilience, providing important support for household consumption and providing buffers for external accounts in the country,” Rivera said.
On the other hand, Mr. Ricafort marked the impact of U.S. President Donald J. Trump on remittance flows.
“In the coming months, President Trump's trade protectionist policies, especially stricter immigration rules, may weigh some OFW remittances, especially from the United States,” he added.
Mr. Trump started an active immigration campaign after taking office in January, declaring illegal immigration “Invasion” to increase deportation.
