The Philippine central bank reported a 2.9 percent year-on-year increase in personal remittances from overseas Filipinos, reaching 2.78 billion U.S. dollars in May. These remittances, which totaled 14.46 billion U.S. dollars in the first five months of the year, have become a crucial source of foreign exchange inflows for the country, supporting economic growth and strengthening ties between overseas Filipinos and their homeland.
24 July 2023 – The Philippine central bank, Bangko Sentral ng Pilipinas (BSP), reported a notable increase in personal remittances from overseas Filipinos, reaching 2.78 billion U.S. dollars in May, representing a 2.9 percent year-on-year growth. In the first five months of the year, remittances amounted to 14.46 billion U.S. dollars, showing a 3.1 percent increase compared to the same period in 2022. The United States, Singapore, and Saudi Arabia were among the top contributors to the surge in remittances, solidifying personal remittances as a major source of foreign exchange inflows for the Southeast Asian nation.
Over the past decades, Filipinos have migrated and established themselves across international borders, with personal remittances becoming a critical component of the country’s foreign exchange inflows. In 2022, personal remittances from overseas Filipinos reached an “all-time high” of 36.14 billion U.S. dollars, equivalent to 8.9 percent of the gross domestic product (GDP), registering a remarkable 3.6 percent increase from the previous year.
The steady growth in remittances highlights the significant role of overseas Filipino workers in supporting the Philippine economy and maintaining strong ties with their families and communities back home. These remittances contribute to consumer spending, investment, and overall economic stability, demonstrating the resilience and commitment of the Filipino diaspora to their homeland.
Despite the challenges posed by the global economic landscape, the steady rise in remittances serves as a positive indicator for the Philippine economy and reinforces the vital role that overseas Filipinos play in driving economic growth and stability in the country. – source: The Nation