Remittances rise 2% to $3.37 billion in August

MANILA, Philippines — Personal remittances from overseas Filipinos rose by two percent to $3.37 billion in August from $3.31 billion in the same period last year, sustaining growth despite global uncertainties, according to the Bangko Sentral ng Pilipinas (BSP).     

The latest  remittance figure, however, was lower than the $3.6 billion recorded in July.

Personal remittances are the BSP’s broad measure of money and other resources sent home by overseas Filipinos. They include cash coursed through banks and informal channels, remittances in kind and other transfers between overseas Filipinos and households in the Philippines.

Meanwhile, cash remittances, which refer specifically to money sent by land-based and sea-based workers through the banking system, rose by 1.9 percent to $3.04 billion from $2.98 billion a year earlier. But the latest figure was also lower than the $3.24 billion recorded in July.

Cash remittances capture only transfers coursed through banks, while personal remittances are broader and include informal and in-kind transfers.

From January to August, personal remittances grew by 2.3 percent to $26.1 billion from $25.51 billion in the same period last year. Cash remittances likewise increased by 2.2 percent to $23.42 billion from $22.91 billion.

“These inflows continued to underpin household spending and domestic economic activity, reflecting the resilience of remittance flows as a key source of household income and external financing,” the BSP said.

Remittances are particularly important for the Philippines because money sent home by Filipinos abroad helps families pay for food, housing, education and other expenses. The inflows also provide the economy with foreign currency, helping cushion it against external pressures.

UnionBank chief economist Ruben Carlo Asuncion said the August figures showed that remittances continued to hold up, although growth had become more moderate.

“August remittances suggest that overseas Filipino inflows remain resilient but are growing at a more moderate pace amid softer deployment and global uncertainties,” Asuncion said.

“While geopolitical risks continue to pose challenges, remittances have historically been among the country’s most stable external inflows,” he said.

Asuncion said holiday-related transfers toward the end of the year could provide additional support to remittance growth.

The United States remained the country’s largest source of cash remittances in the eight-month period, followed by Singapore, Saudi Arabia, Japan and the United Kingdom.

The BSP cautioned that the country-of-origin figures have limitations because many remitting and correspondent banks are located in the US. As a result, funds recorded as originating from the US were not necessarily earned there.