Remittances hit record-high in 2021 as more Filipino workers deployed overseas

Remittances from overseas Filipinos (OFs) grew to a record high in 2021 after also recording the biggest monthly performance in December, data released by the Bangko Sentral ng Pilipinas (BSP) on Tuesday showed.

According to central bank data, remittances — money transfers coursed through banks — jumped by 3.3% to $2.987 billion in December from $2.890 billion the same month in 2020.

Year-to-date cash remittances increased by 5.1% to $31.418 billion from $29.903 billion in 2020.

“Notwithstanding the global pandemic, cash remittances sent by OFs across various regions remained robust,” the BSP said in an accompanying statement.

Annual cash remittances from the Americas grew by 7.1%, Europe by 5.5%, Asia by 4.5%, and the Middle East by 0.7%.

The United States accounted for 40.5%, followed by Singapore, Saudi Arabia, Japan, the United Kingdom, the United Arab Emirates, Canada, Taiwan, Qatar, and South Korea.

Combined remittances from the top 10 countries reflected 78.9% of the total cash remittances for the year.

Meanwhile, personal remittances — the sum of transfers sent in cash or in-kind via informal channels — rose by 2.9% to $3.298 billion in December from $3.205 billion in the comparable period in 2020.

The latest reading is the highest monthly level recorded since data collection started in 2005.

Full-year 2021 personal remittances stood at $34.884 billion, up 5.1% from $31.194 billion recorded in 2020.

Personal remittances for the year accounted for 8.9% of the gross domestic product, and 8.5% of the gross national income.

“The growth in personal remittances reflected a pickup in OFW deployment, strong demand for OFWs amid the reopening of host economics to foreign workers, and the continued shift to digital support that facilitated inward transfer of remittances,” the central bank said. — DVM, GMA News