MANILA — Remittances from overseas Filipino workers (OFWs) grew 3.3% year-on-year to $3.01 billion in September 2024, according to data released Friday by the Bangko Sentral ng Pilipinas (BSP), the country’s central bank.
The cumulative remittances for the first nine months of 2024 reached $25.23 billion, marking a 3% increase from $24.49 billion in the same period last year.
Both land-based and sea-based workers contributed to the September growth, the BSP reported. The United States, Saudi Arabia, Singapore, and the United Arab Emirates were identified as the primary sources of remittance inflows during the January-September period.
“Remittances continue to be one of the Philippine economy’s strongest pillars,” said Michael Ricafort, chief economist at Rizal Commercial Banking Corporation. He noted that these cash transfers fuel consumer spending, which represents approximately 70% of the country’s economic output. The Philippines maintains its position as the world’s fourth-largest remittance recipient, following India, Mexico, and China.
Analysts expect remittances to strengthen further during the upcoming holiday season. However, several risk factors loom on the horizon, including potential protectionist policies under U.S. President-elect Donald Trump’s incoming administration, possible Federal Reserve rate changes, China’s economic slowdown, and various global geopolitical tensions.
The steady flow of remittances has historically provided a crucial buffer for the Philippine economy, helping maintain currency stability and supporting domestic consumption. The September figures suggest this trend continues despite global economic uncertainties.
