The Market Monitor Minding the Nation's Business
By Riza Lozada
Despite the still weak global economy, cash remittances from overseas Filipino workers (OFWs) grew by 8.6 percent from last year to $2.17 billion in January 2017, higher than the Bangko Sentral ng Pilipinas (BSP) target of a four percent growth.
BSP data showed cash inflows in the first month of the year was higher than the $2 billion inflows a year ago but lower than the record-high $2.6 billion last December.
Including value of in-kind remittances, personal remittances last January rose 8.5 percent to $2.4 billion.
In 2016, cash remittances grew by five percent to $26.9 billion while total remittances reached $29.71 billion.
BSP Governor Amando Tetangco Jr. traced the rise in personal remittances to higher inflows from land-based workers who have work contracts of one year or more.
He said inflows from land-based workers rose 13.5 percent and countered the 8.3 percent drop of inflows from sea-based workers, who were affected by stiffer competition, and land-based workers who have work contracts of less than a year.
Bulk or 79 percent of the inflows in the first month this year came from the United States, Saudi Arabia, United Arab Emirates, United Kingdom, Japan, Singapore, Hong Kong, Quatar, Kuwait, and Australia.