OFW remittances rose in Sept. to $2.2B, up 4.3%

Migrant worker remittances, which form a major pillar of the Philippine economy, rose in September to the third-highest level for any single month on record, the Bangko Sentral ng Pilipinas (BSP) reported Monday.

The growth in September represents a turnaround from the modest contraction posted the month before, and puts the projections made earlier this year within reach.

Officials credited the sustained demand for overseas Filipino workers (OFW), despite weakening economic conditions in countries where migrants are based, for the continued expansion.

In September, OFW remittances rose to $2.201 billion, 4.3-percent up year-on-year. The only other months when OFWs sent home more cash were in December and October last year, when remittances reached $2.317 billion and $2.228 billion, respectively.

This brought cash remittances for the period January to September to $18.4 billion, representing a 4.1-percent growth year-on-year.

The BSP expects remittances to reach $25.6 billion by yearend, an increase of 5 percent from 2014.

Worries over the sustainability of remittances were raised earlier this year after data showed a contraction of 0.6 percent in August.

Remittances are the largest source of foreign exchange income for the Philippine economy, helping insulate the country from external shocks by ensuring the steady supply of dollars in the system.

These cash transfers are also a major driver for domestic consumption, which last year accounted for about two-thirds of gross domestic product.

Cash remittances from land-based and sea-based workers grew by 4.4 percent (to $14.1 billion) and 3.3 percent (to $4.3 billion), respectively.

The bulk of cash remittances came from the United States, Saudi Arabia, the United Arab Emirates, Singapore, the United Kingdom, Japan, Hong Kong, and Canada.

Preliminary reports from the Philippine Overseas Employment Administration (POEA) indicated that for the period January to September, total job orders reached 663,112, of which 41.6 percent have been processed.

These job orders were intended mainly for service, production, and professional, technical and related workers needed in Saudi Arabia, Kuwait, Qatar, Taiwan and Hong Kong.