Personal remittances set new record in December 2018; full-year level highest to date 

February 15, 2019

Personal remittances from overseas Filipinos (OFs) registered a new record high of $3.2 billion in December 2018, higher by 3.6 percent compared to the level posted in the same month last year, Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla, Jr. announced Friday.

Personal remittances, which grew by three percent year-on-year, reached $32.2 billion in 2018, the highest annual level to date.

The growth in personal remittances was driven by remittance inflows from land-based OFs with work contracts of one year or more and remittances from both sea-based and land-based OFs with work contracts of less than one year, which rose annually by 2.8 percent and 4.6 percent, respectively, according to the BSP.

Personal remittances is a major driver of domestic consumption and, in 2018, it accounted for 9.7 percent of gross domestic product (GDP) and 8.1 percent of the gross national income (GNI).

Similarly, cash remittances in December 2018 grew markedly by 3.9 percent year-on-year to reach an all-time high of $2.8 billion.

Countries that contributed most to the increase in December were the United States and Canada. Full- year cash remittances registered a 3.1 percent growth to reach $28.9 billion.

The growth in cash remittances was supported by transfers from land-based and sea-based OF workers, which grew by 2.8 percent and 4.6 percent from last year’s levels, respectively.

Cash remittances in 2018 remained strong amid political uncertainties across the globe.

This is evident in Asia, the Americas, and Europe, which grew annually by 12.3 percent, 9.7 percent and 7.7 percent, respectively, said the BSP. 

The growth in these regions made up for the 15.3 percent decrease in remittances from the Middle East (partly due to the continued repatriation program of the government).

By country source, the bulk of cash remittances for the year came from the US, Saudi Arabia, United Arab Emirates, Singapore, Japan, the United Kingdom, Qatar, Canada, Germany, and Hong Kong. Cash remittances from these countries accounted for almost 79 percent of total cash remittances. DMS