Overseas Filipino workers (OFW) sent over USD $38.34 billion in remittances back to the Philippines in 2024, marking a 3% increase from the USD $37.21 billion recorded in 2023. This new high, as reported by the Bangko Sentral ng Pilipinas (BSP), underscores the vital role OFW and remittances play in the Philippine economy.
A significant surge in remittances during December 2024, reaching USD $3.73 billion, played a crucial role in achieving this annual record. The figure represents a notable jump from the USD $3.62 billion sent home in December 2023.
The BSP attributed this overall growth to increased contributions from both land-based and sea-based workers.
The impact of these remittances on the Philippine economy is substantial. In 2024, they represented 8.3% of the country’s Gross Domestic Product (GDP) and 7.4% of its Gross National Income (GNI), highlighting their importance as a key economic driver.
The bulk of these remittances, amounting to USD $34.49 billion, were sent through formal banking channels, also demonstrating a 3% year-on-year increase. The primary sources of these cash remittances were the United States, Singapore, and Saudi Arabia, with the US remaining the largest contributor.
On a global scale, the Philippines ranked fourth among the top remittance-receiving countries in 2024, according to the World Bank.
The estimated inflow of USD $40 billion placed the Philippines behind India (USD $129 billion), Mexico (USD $68 billion), and China (USD $48 billion), but ahead of Pakistan (USD $33 billion). This ranking further emphasises the significant contribution of Filipino workers abroad to both their families’ livelihoods and the national economy.
The substantial inflow of remittances provides crucial support for domestic consumption, investment, and overall economic stability in the Philippines.
Featured image credit: Edited from Freepik
