July OFW Remittances Drop 5.4% Amid Sluggish Global Economy, Depressed Oil Prices

Value of remittance from Filipino workers abroad has dropped in July as low global oil prices and economic slowdown has taken its toll.

According to data from the Bangko Sentral ng Pilipinas September 15, overseas personal remittances amounted to $2.355 billion in July, a 5.4% drop year-on-year.

Overall, the amount of personal remittances so far this year has grown by 2.9% at $16.9 billion, according to BSP Governor Amando Tetangco Jr.

Remittances from land-based workers with work contracts of one year or more amounted to $13.1 billion, while sea-based workers and those on short-term contracts – excluding their expenditures abroad – totaled $3.6 billion. Except for March and July, there was an increase in remittances every month in 2016.

Bulk of remittances (about 80%) were from the United States, Saudi Arabia, the United Arab Emirates, Singapore, the United Kingdom, Japan, Qatar, Kuwait, Hong Kong, and Germany.

“Remittance inflows for the first 7 months of 2016 remained stable despite the decline in deployment of skilled Filipino workers,” Tetangco said in a statement.

The BSP has a forecast of 4% growth in OFW cash remittances this year.