Update cash remittances from Overseas Filipino Workers (OFW)
Some countries, such as India and China, receive tens of billions of US dollars in remittances each year from their expatriates. In 2014, India received an estimated 70 billion USD of remittances and China an estimated 60 billion of USD. The Philippines received an estimated 25 billion of USD of remittances in 2014.
A remittance is a transfer of money by a foreign worker to an individual in his or her home country. Money sent home by migrants competes with international aid as one of the largest financial inflows to developing countries. Workers' remittances are a significant part of international capital flows, especially with regard to labour-exporting countries as The Philippines.
Remittances in the Philippines
Cash remittances from Overseas Filipino Workers (OFW), which accounted for approximately 8.5% of GDP in the Philippines in 2014, are an important source of income for many Filipino families and thus a key driver of private consumption. According to the Central Bank, cash remittances mainly came from the United States, Saudi Arabia and the United Arab Emirates.
In June, cash remittances from Overseas Filipino Workers (OFW) increased 5.8% over the same month last year, reaching USD 2.2 billion. The print was in line with May’s increase. The overall trend improved slightly as cash remittances totaled USD 25.0 billion in the 12 months up to June, coming in slightly above May’s USD 24.9 billion and marking yet another record high. The increase represented a 5.7% expansion over the same period last year, which met May’s result.
Filipino migrants sent over remittances back to the Philippines through formal banking systems. However, with the increasing relevance and reach of the Internet, online and mobile phone money transfers have grown significantly.