By Luisa Maria Jacinta C. Jocson, Reporter
MONEY SENT HOME by migrant Filipinos rose by 2.9% 12 months on 12 months in January, the Bangko Sentral ng Pilipinas (BSP) said on Monday.
Money remittances from overseas Filipino employees (OFWs) coursed through banks increased by 2.9% to $2.92 billion in January from $2.84 billion in the identical month in 2024.
The two.9% annual growth in January was a tad slower than the three% expansion seen in December 2024.
Month on month, remittances declined by 13.7% from $3.38 billion in December.
Money remittances in January were also the bottom level in two months or since $2.81 billion in November.
BSP data showed remittances from land-based employees jumped by 3.4% to $2.33 billion in January from $2.25 billion a 12 months ago.
Sea-based OFWs sent home $587 million throughout the month, inching up by 0.9% from $582 million within the previous 12 months.
“The expansion in money remittances from Saudi Arabia, the USA, Singapore, and the United Arab Emirates (UAE) mainly contributed to the rise in remittances in January 2025,” the central bank said.
In January, the US remained the highest source of remittances, accounting for 41.2% of the full.
This was followed by Singapore (7.5%), Saudi Arabia (6.6%), Japan (5.7%), and the UK (4.7%).
The UAE (3.5%), Canada (3.1%), Taiwan (2.8%), Qatar (2.8%), and Malaysia (2.4%) were also foremost sources of money remittances.
Remittances from the highest 10 countries accounted for over 80% of overall remittances throughout the month.
Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said the 13.7% month-on-month drop in money remittances is “not alarming” as this was a seasonal effect as the majority of remittance flows is normally seen within the fourth quarter.
“The month-on-month slowdown of remittances is predicted as the consequences of the vacation season got here to a detailed,” Reinielle Matt M. Erece, economist at Oikonomia Advisory and Research, Inc., said.
“Typically, remittances grow faster throughout the latter months of the 12 months as families rejoice the vacations,” he added.
Meanwhile, central bank data showed personal remittances, which contain inflows in kind, increased by 2.9% to $3.24 billion in January from $3.15 billion in the identical month in 2024.
“The rise was observed in remittances from each land-based and sea-based employees,” it added.
Remittances from employees with contracts of 1 12 months or more rose by 3% to $2.52 billion, while those with contracts lower than one 12 months went up by 2.5% to $650 million.
In the approaching months, Mr. Erece said risks arising from global economic uncertainty could dampen remittance flows.
“This 12 months, we should always monitor the persistent global economic uncertainty brought on by trade wars and geopolitical tensions, which can cause a little bit of a slowdown in remittances as OFWs cushion the risks of upper living costs abroad,” he said.
Markets are pricing within the potential impact of US President Donald J. Trump’s barrage of tariffs on the remaining of the world. Amongst these proposals is a reciprocal tariff that Mr. Trump has pledged to impose on all the US’ trading partners.
“We should always also monitor the exchange rate, influenced by the Fed and BSP’s respective monetary policies. A cautious Fed may cause a peso depreciation, enticing OFW remittances to make the most of an elevated peso value of the dollar,” he added.
While the US central bank is predicted to maintain rates of interest unchanged on Wednesday, its commentary on the impact of tariff policies on US inflation and growth can even be closely watched, Reuters reported.
Money remittances rose by an annual 3% to $34.49 billion in 2024. The BSP expects remittances to grow by 3% this 12 months.
