OFW remittances growth slowing

MANILA  -The growth in remittances sent home by Filipinos living and working abroad is expected to slow down from 4 percent in 2022 to 2.5 percent in 2023 and 2024, in line with the global outlook for remittances.

This is according to a report published by the World Bank (WB) in partnership with think tank Global Knowledge Partnership on Migration and Development or Knomad.

The 47-page brief titled “Remittances Remain Resilient but are Slowing” estimates that remittances to the Philippines will grow from $38 billion in 2022 to $39 billion this year and $40 billion next year.

In 2022, the Philippines received the fourth biggest amount of cross-border money transfers, trailing India ($111 billion), Mexico ($61 billion), and China ($51 billion).

Remittance growth in the Philippines benefited from recent bilateral arrangements with governments of countries that host overseas-based Filipinos, the report said.

Also, the Philippines— along with Cambodia—is distinct among the larger East Asian countries in terms of remittances representing more than 9 percent of gross domestic product.

Remittance flows to the Philippines—the largest recipient after China in the East Asia and Pacific region—grew at about 4 percent to reach $38 billion in 2022, relative to $36.7 billion in 2021.

Examples include the government’s lifting of the ban on deployment of workers to Saudi Arabia due to the abusive treatment by employers, and specific deals forged by the Filipino government, especially with countries that are members of the Organisation for Economic Cooperation and Development.

Also helping the increase of remittances to the Philippines is the relatively lower cost of sending money here.

The expected weakening of inflows to the Philippines was attributed to a slowdown in movement of workers triggered by the revival of tourism.

READ:  OFW remittances up 3% in March