OFW remittances hit record-high $38.34 billion in 2024

Manila: Personal remittances from overseas Filipinos surged to an all-time high of $38.34 billion in 2024.

This marks a 3 per cent increase from the $37.21 billion recorded in 2023, the Bangko Sentral ng Pilipinas (BSP) reported on Monday (February 17, 2025).

December 2024 saw a record monthly remittance inflow of $3.73 billion, contributing significantly to the full-year total.

Key role

The BSP noted that remittances accounted for approximately 8.3 percent of the country’s gross domestic product (GDP) and 7.4 percent of gross national income (GNI), underscoring their critical role in the Philippine economy.

Personal remittances encompass funds sent through banks, informal channels, and non-cash transfers.

Of the total remittances last year, cash remittances coursed through banks reached $34.49 billion, up from $33.49 billion in 2023.

Top sources

The growth in cash remittances from the United States, Saudi Arabia, Singapore, and the United Arab Emirates primarily drove the overall increase in remittances in 2024, the BSP stated.

The steady 3 per cent growth rate in remittances reflect the consistent overseas worker deployment and higher demand for skilled Filipino labour.

OFW remittances have been setting new record highs each month, particularly in December, when remittance inflows peak due to holiday-related spending and currency conversion.

Fuel for growth

Economists point to remittances as the fuel behind domestic demand and economic activity, supporting key sectors such as real estate, automotive, education, and investments.

With overseas remittances playing a vital role in sustaining household income and economic stability, their continued growth remains essential for the Philippine economy.

Upsides of remittances

When expat workers send more dollar remittances back home, several economic effects can occur, including a stronger currency, higher consumer spending.

Remittances boost household incomes, leading to increased spending on essentials, education, housing, and luxury goods. This stimulates economic growth and benefits local businesses.

"Safety net"

A surge in remittances also increases the supply of foreign currency (e.g., US dollars), which can strengthen the recipient country’s currency if demand remains steady.

It also helps reduce poverty and raise living standards. For many developing nations, remittances act as a "safety net", helping families afford healthcare, education, and basic necessities. This reduces poverty rates and improves overall quality of life.

However, excessive inflows may lead to currency appreciation, making exports less competitive.

Peso weakens

The peso closed at 58.03 to a dollar on Monday (February 17), depreciating from its 57.83 finish last Friday, according to BSP data.

The Asian currency opened trading at 57.78 against the dollar, fluctuating within a range of 57.78 to 58.05. The day's average exchange rate settled at 57.92.

Meanwhile, trading volume declined to $1.16 billion from $1.66 billion.

Top 5 recipient countries

The top remittance-receiving countries, primarily from US-dollar transfers, include: