Manila: Personal remittances, including cash transfers and hand carried deliveries from 10 to 12 million Overseas Filipino Workers (OFWs) to their loved ones in the Philippines reached $26.92 billion (Dh98.79 billion) for the whole year of 2014, the central bank said, adding that the amount included $24.308 billion cash remittances for the same period.

These figures represent the highest level in any year, said the Bangko Sentral Philippines (BSP). The bank said that personal and cash remittances of OFWs have continuously strengthened the country’s consumer-led economy.

OFWs’ personal remittances in 2014 cumulatively grew by 6.2 per cent compared to 5.8 percent in 2013, BSP said.

“In 2014, there has been a steady rise of remittances from land-based workers with contracts of one year or more,” said the BSP, adding, “The sustained increase in remittances during the year was underpinned by the steady rise of remittances from land-based workers with contracts of one year or more.”

Sources of remittances in December 2014 were the United States, Saudi Arabia, UAE, United Kingdom, Singapore, Japan, Hong Kong, and Canada.

Despite weakened economies in developed countries that host OFWs, their continuous and strong demand for skilled labour from the Philippines contributed to the continuing increase of OFWs’ personal remittances since 2009.

Gross Domestic Product

In 2009, OFWs’ personal remittances reached $19.078 billion and cash remittances, $17.348 billion, said the BSP.

In 2014, OFWs’ personal remittances represented 8.5 percent of the country’s gross domestic product (GDP); and 8.4 percent of GDP in 2013, according to the BSP.

OFWs’ steady personal and cash remittances also represent the biggest component of current account surplus that cover payments for imports in the Philippines, the BSP said.

The 10 to 12 million OFWs represent 10 to 12 percent of the population in the Philippines, making it one of the world’s top sources of overseas workers.

The Philippines is the world’s third largest sources of cross border personal and cash transfers after India and China.