Personal remittances from overseas Filipinos (OFs) grew by 10.8 percent year-on-year in January 2018 to reach US$2.7 billion, BSP Governor Nestor A. Espenilla, Jr. announced today.1 Personal remittances from land-based workers with work contracts of one year or more aggregated US$2.1 billion, higher by 8.4 percent than the level recorded in January 2017. Meanwhile, those from sea-based and land-based workers with work contracts of less than one year rose by 15.3 percent to US$0.5 billion.
Cash remittances from OFs coursed through banks summed up to US$2.4 billion in January, representing a 9.7 percent year-on-year growth. Remittances from both land-based (US$1.9 billion) and sea-based (US$0.5 billion) workers increased by 8.4 percent and 15.3 percent, respectively. By country source, the bulk of cash remittances came from the United States (US), United Arab Emirates (UAE), Saudi Arabia, Singapore, United Kingdom, Japan, Qatar, Canada, Kuwait, and Germany.2 The combined remittances from these countries accounted for more than 80 percent of total cash remittances.
The US, Canada, Singapore, and UAE were the major contributors to the growth in cash remittances for the month. Remittances from the United States grew by 14.3 percent, contributing 4.6 percentage points to the 9.7 percent overall growth. Meanwhile, cash remittances from Canada, Singapore and UAE contributed a combined 4.6 percentage points to total growth in cash remittances.
1 The BSP started to release data on personal remittances in June 2012. As defined in the Balance of Payments Manual, 6th Edition (BPM6), personal remittances represent the sum of net compensation of employees (i.e., gross earnings of overseas Filipino (OF) workers with work contracts of less than one year, including all sea-based workers, less taxes, social contributions, and transportation and travel expenditures in their host countries), personal transfers (i.e., all current transfers in cash or in kind by OF workers with work contracts of one year or more as well as other household-to-household transfers between Filipinos who have migrated abroad and their families in the Philippines), and capital transfers between households (i.e., the provision of resources for capital purposes, such as for construction of residential houses, between resident and non-resident households without anything of economic value being supplied in return).
2 There are some limitations on the remittance data by source. A common practice of remittance centers in various cities abroad is to course remittances through correspondent banks, most of which are located in the U.S. Also remittances coursed