BSP: OFW Remittances on an Upswing

Remittances to the Philippines from Overseas Filipino Workers (OFWs) show their remarkable contribution to the national economy, as evidenced by the latest report from the Bangko Sentral ng Pilipinas (BSP).

From January to July of this year, cash remittances sent through the international banking system totalled $16.6 billion, which is 3 percent more than last year’s $16.09 billion, according to BSP Governor Nestor  A. Espenilla Jr.

Over 79 percent of these remittances are from the United States, Saudi Arabia, United Arab Emirates, Singapore, Japan, United Kingdom, Qatar, Canada, Germany, and Hong Kong.

Majority of these remittances (amounting to $13.1 billion), are from land-based Filipino workers: construction workers, engineers and architects, doctors and nurses, information technology experts, caregivers and home workers, etc. The rest (amounting to $3.5 billion) are from sea-based workers: sailors and officers aboard the ships from different maritime nations in the world.

Personal remittances, sent between households through personal deliveries and means other than than the international banking system above, account for another $18.5 billion, which is 3 percent more than the 2017 figure of $17.9 billion.

With one whole quarter of the year left, which includes the Christmas season where remittances will pour in, we are sure to exceed last year’s record of $59.35 billion.

Kuwait can wait

This growth in remittances is despite the stricter rules for OFWs in Kuwait, as the Philippine Overseas Employment Administration (POEA) tightened its requirements for recruiters and employers, due to some foreign recruitment agencies there refusing to comply with POEA’s requirements.

The impact of OFWs is undeniable, because without their contributions, our total national income, as measured by the Gross Domestic Product, would be significantly lower. Our fellow Filipinos endure being separated from their loved ones for years, in order to ensure a better life for their families – which, in turn, bolsters our national economy.

Filipinos the world over are not known only for their technical skills, but also for their warmth and dedication to their duty. It is not uncommon to hear stories of employers preferring Filipinos in the fields of healthcare and caregiving, because we are known to provide that extra personal touch that we have developed from our tight-knit culture.