OFW REMITTANCES
Sources: BSP, IFAD, IDB, IMF, NSO
Last updated: December 14, 2007

OFW remittance trends

  • OFW remittances have doubled over the past few years. From around $6 billion in 2000-2002, it rose to more than $12 billion in 2006.
     
  • OFW remittances from January-October 2007 are 15.2% higher compared to the remittances for the same period in 2006.
     
  • Since early 2006, OFW remittances have been averaging over $1 billion every month.

factors in the increase of OFW remittances

  • continued deployment of Filipino workers overseas, as demand for Filipino workers in the international labor market remains strong
     
  • in an effort to encourage more OFWs to send their remittances via formal (banking) channels, financial institutions continue to expand banking services, establish more remittance centers abroad, and tie up with foreign financial institutions for the banking needs of OFWs

OFW REMITTANCES
COURSED THROUGH BANKS
Source: BSP

YEAR AMOUNT (in US$)
2000 6,050,450,000
2001 6,031,271,000
2002 6,886,156,000
2003 7,578,458,000
2004 8,550,371,000
2005 10,689,005,000
2006 12,761,308,000
Jan-Oct 2006 10,297,833,000
Jan-Oct 2007 11,865,982,000

  • Migrants from developing countries sent home more than $300 billion worth of remittances in 2006, according to a study by the International Fund for Agricultural Development (IFAD) and the Inter-American Development Bank (IDB). OFW remittances in 2006 accounted for approximately 4.25% of this $300 billion.
     
  • The International Monetary Fund cited the Philippines as the third largest recipient of remittances among developing countries (behind India and Mexico) in its World Economic Outlook Report in 2005. The study compared remittance statistics of various developing for the period 1999-2003.


Majority of OFWs course their remittances in cash and through banks.

  • types of remittances sent by OFWs:
    • cash sent - 74.4%
    • cash brought home - 21%
    • remittances in kind - 4.6%
  • of the total cash remittance sent,
    • sent through banks - 79.3%
    • sent through door-to-door - 13.2%
    • sent through other means (sent through the agency/ local office, friends/co-workers, etc.) - 7.5%

Source: 2006 Survey on Overseas Filipinos