Lawrence Agcaoili (The Philippine Star) - February 16, 2018 - 12:00am
MANILA, Philippines — Remittances sent by
Filipinos abroad exceeded the growth target set by the Bangko Sentral ng
Pilipinas (BSP) last year to hit a record high $31.29 billion,
providing support to the country’s economy as a major driver of domestic
demand.
BSP Governor Nestor Espenilla Jr. said personal remittances rose 5.3 percent to a record $31.29 billion last year from $29.71 billion in 2017.
He said the sustained growth in personal remittances was due to higher contributions from land-based workers with work contracts of one year or more that increased by 4.1 percent, while that of sea-based and land-based workers with work contracts of less than one year went up by 5.3 percent.
He said personal remittances accounted for 10 percent of gross domestic product (GDP) and 8.3 percent of gross national income (GNI) last year.
For the month of December alone, personal remittances increased 7.9 percent to $3.05 billion from $2.82 billion in the same month in 2016.
Personal remittances represent the sum of net compensation of employees, personal transfers and capital transfers between households. It measures cash and non-cash items that flow through both formal or via electronic wire and informal channels such as money or goods carried across borders.
Likewise, Espenilla said cash remittances coursed through banks grew 4.3 percent to an all-time high of $28.06 billion last year from $26.9 billion in 2016.
“Notwithstanding pockets of political uncertainties across the globe, cash remittances in 2017 remained resilient,” the BSP chief said.
The BSP has set a four percent growth target for both personal and cash remittances for 2017.
Espenilla said the higher cash remittances in 2017 were supported by
the increase in transfers from both land-based and sea-based workers by
four percent and 5.4 percent, respectively.
By country source, the bulk or 80 percent of total cash remittances came from the US, United Arab Emirates, Saudi Arabia, Singapore, Japan, United Kingdom, Qatar, Kuwait, Germany and Hong Kong.
Remittances from the Middle East inched up 3.4 percent, driven by growth in remittances from the UAE, Qatar and Bahrain, while the amount of money sent home from Asia rose 7.3 percent, boosted by transfers originating from Singapore, Japan and Taiwan.
For the Americas, which increased by 5.8 percent, the major contributor was the 5.5 percent growth in remittances from the US.
Despite the decrease in remittances coming from the United Kingdom partly due to the depreciation of the pound sterling vis-a-vis the US dollar, data showed remittances from Europe still increased 1.5 percent.
For the month of December alone, cash remittances went up 7.1 percent to an all-time high of $2.74 billion from $2.56 billion in the same month in 2016.
The Philippines booked 76 quarters of uninterrupted growth with the GDP expanding 6.6 percent in the fourth quarter from the revised seven percent in the third quarter.
BSP Deputy Governor Diwa Guinigundo earlier said the amount of money sent home by Filipinos abroad would continue to grow this year despite the setbacks arising from the deployment ban to Kuwait as well as the imposition of higher fees on remittances.
Guinigundo said the decision of Malacanang to impose a ban on the deployment of Filipino workers to Kuwait would have a minimal impact on remittances.
He pointed out cash remittances from Kuwait account for only about three percent of total remittances.
“On the ban on deployment of OFWs to Kuwait, the impact may not be significant. Prospective workers may still be deployed to other countries with demand for Filipino workers,” he added.
Likewise, he clarified that Filipinos working abroad are exempted from the payment of documentary stamp tax (DST) on remittances that was doubled to 60 centavos for every P200 from the previous 30 centavos under Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) law signed by President Duterte last Dec. 19.
BSP Governor Nestor Espenilla Jr. said personal remittances rose 5.3 percent to a record $31.29 billion last year from $29.71 billion in 2017.
He said the sustained growth in personal remittances was due to higher contributions from land-based workers with work contracts of one year or more that increased by 4.1 percent, while that of sea-based and land-based workers with work contracts of less than one year went up by 5.3 percent.
He said personal remittances accounted for 10 percent of gross domestic product (GDP) and 8.3 percent of gross national income (GNI) last year.
For the month of December alone, personal remittances increased 7.9 percent to $3.05 billion from $2.82 billion in the same month in 2016.
Personal remittances represent the sum of net compensation of employees, personal transfers and capital transfers between households. It measures cash and non-cash items that flow through both formal or via electronic wire and informal channels such as money or goods carried across borders.
Likewise, Espenilla said cash remittances coursed through banks grew 4.3 percent to an all-time high of $28.06 billion last year from $26.9 billion in 2016.
“Notwithstanding pockets of political uncertainties across the globe, cash remittances in 2017 remained resilient,” the BSP chief said.
The BSP has set a four percent growth target for both personal and cash remittances for 2017.
By country source, the bulk or 80 percent of total cash remittances came from the US, United Arab Emirates, Saudi Arabia, Singapore, Japan, United Kingdom, Qatar, Kuwait, Germany and Hong Kong.
Remittances from the Middle East inched up 3.4 percent, driven by growth in remittances from the UAE, Qatar and Bahrain, while the amount of money sent home from Asia rose 7.3 percent, boosted by transfers originating from Singapore, Japan and Taiwan.
For the Americas, which increased by 5.8 percent, the major contributor was the 5.5 percent growth in remittances from the US.
Despite the decrease in remittances coming from the United Kingdom partly due to the depreciation of the pound sterling vis-a-vis the US dollar, data showed remittances from Europe still increased 1.5 percent.
For the month of December alone, cash remittances went up 7.1 percent to an all-time high of $2.74 billion from $2.56 billion in the same month in 2016.
The Philippines booked 76 quarters of uninterrupted growth with the GDP expanding 6.6 percent in the fourth quarter from the revised seven percent in the third quarter.
BSP Deputy Governor Diwa Guinigundo earlier said the amount of money sent home by Filipinos abroad would continue to grow this year despite the setbacks arising from the deployment ban to Kuwait as well as the imposition of higher fees on remittances.
Guinigundo said the decision of Malacanang to impose a ban on the deployment of Filipino workers to Kuwait would have a minimal impact on remittances.
He pointed out cash remittances from Kuwait account for only about three percent of total remittances.
“On the ban on deployment of OFWs to Kuwait, the impact may not be significant. Prospective workers may still be deployed to other countries with demand for Filipino workers,” he added.
Likewise, he clarified that Filipinos working abroad are exempted from the payment of documentary stamp tax (DST) on remittances that was doubled to 60 centavos for every P200 from the previous 30 centavos under Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) law signed by President Duterte last Dec. 19.
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