The Philippine economy received a significant boost in 2022, as cash remittances from overseas Filipino workers (OFWs) surged to $32.54 billion, according to data from the Bangko Sentral ng Pilipinas released on Wednesday. The figure represents a 3.6 percent increase from the $31.42 billion recorded in 2021.
The central bank noted that the growth in cash remittances in December 2022 was due to the increase in receipts from land- and sea-based workers. In December alone, cash remittances grew 5.8 percent to $3.16 billion.
The United States, Saudi Arabia, Singapore, Qatar, and the United Kingdom contributed largely to the increase for the year. The US posted the highest share of overall remittances in 2022, followed by Singapore and Saudi Arabia, the BSP added.
In addition, the BSP reported that overall personal remittances grew to an all-time high of $36.14 billion in 2022, a 3.6 percent increase from the $34.88 billion recorded in 2021. In December, personal remittances grew 5.7 percent to $3.49 billion.
The BSP said the full-year level accounted for 8.9 percent and 8.4 percent of the country’s gross domestic product and gross national income, respectively.
The Philippines has long relied on the contributions of its overseas workers to support its economy. The country is one of the world’s top labor exporters, with millions of Filipinos working in various industries around the world. Their remittances have become a significant source of income for their families and the country as a whole.
The growth in remittances in 2022 is a positive sign for the Philippine economy, which has been hit hard by the COVID-19 pandemic. It is expected to help fuel economic growth and provide much-needed support to businesses and households across the country.
