Personal remittances climb to US$19.5B in first 8 months of 2016
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MANILA - Personal remittances of Overseas Filipinos in August 2016 increased by 16 percent year-on-year to reach $2.6 billion, Bangko Sentral ng Pilipinas Officer-in-Charge Nestor A. Espenilla announced Monday.
On a year-to-date basis, personal remittances for the first eight months of 2016 grew by 4.4 percent from the previous year’s level to $19.5 billion. Personal remittances comprised largely of transfers from land-based workers with work contracts of one year or more (at $15.1 billion) and remittances from sea-based and land-based workers with work contracts of less than one year (at $4.1 billion).
Similarly, cash remittances from OFs coursed through banks grew 16.3 percent in August 2016. Cumulative remittances in the first eight months of 2016 posted a 4.6-percent increase totaling $17.6 billion. In particular, cash remittances from land-based workers rose by 6.5 percent to US$13.1 billion while that of sea-based workers fell moderately by 1.9 percent to reach US$3.8 billion. About 80 percent of cash remittances came from the United States, Saudi Arabia, the United Arab Emirates, Singapore, the United Kingdom, Japan, Qatar, Kuwait, Hong Kong, and Germany.
BSP started to release data on personal remittances in June 2012. As defined in the Balance of Payments and International Investment Position Manual, 6th Edition (BPM6), personal remittances represent the sum of net compensation of employees (i.e., gross earnings of overseas Filipino (OF) workers with work contracts of less than one year, including all sea-based workers, less taxes, social contributions, and transportation and travel expenditures in their host countries), personal transfers (i.e., all current transfers in cash or in kind by OF workers with work contracts of one year or more.
It also includes other household-to-household transfers between Filipinos who have migrated abroad and their families in the Philippines); and capital transfers between households (i.e., the provision of resources for capital formation purposes, such as for construction of residential houses, between resident and non-resident households without anything of economic value being supplied in return).