OVERSEAS Filipino worker (OFW) remittances fell in November from a month earlier but were higher compared to the previous year, Bangko Sentral ng Pilipinas (BSP) data showed on Monday.

At $3.0 billion, personal remittances were lower compared to October's $3.33 billion but picked up from the year-earlier $2.93 billion.

A Moneygram remittance center at Lucky Plaza Mall in Singapore where overseas Filipino workers (OFWs) remit money to loved ones in the Philippines. PHOTO BY AARON RONQUILLO

OFWs with contracts of a year or more and sea- and land-based workers with contracts of less than one year primarily drove the growth, the BSP said in a statement.

Money sent home via banks alone totaled $2.7 billion, up from $2.6 billion in November 2022 but also lower than last October's $2.99 billion.

The tallies were the lowest in six months or since May when personal remittances totaled $2.8 billion and cash remittances came in at $2.5 billion.

Year to date, overall remittances totaled $33.6 billion, 2.9 percent more than the year-earlier $32.6 billion, while cash remittances grew by 2.8 percent to $30.2 billion from $29.4 billion.

November's 2.9-percent year-on-year growth slowed from 3.1 percent in October and 5.8 percent a year earlier. Year-to-date, the rate was unchanged from the previous month but lower than the 3.4 percent seen in the comparable 2022 period.

As for cash remittances, November's 2.8-percent growth was also down from 3.0 percent a month earlier and 5.7 percent a year ago. Year-to-date it was unchanged at 2.8 percent but slipped from 3.3 percent in January-November 2022.

Higher cash remittances from the United States, Saudi Arabia, and the United Arab Emirates (UAE) were said to have driven 11-month growth.

The US, meanwhile, accounted for 41.2 percent of year-to-date total remittances, followed by Singapore (6.9 percent), Saudi Arabia (6.0 percent) and Japan (5.0 percent).

Other countries that contributed to overall remittances were the United Kingdom (4.7 percent), the UAE (4.3 percent), Canada (3.6 percent), Qatar (2.8 percent), Taiwan (2.7 percent) and Korea (2.5 percent).

The US accounts for the bulk as remittance centers in many cities abroad course the funds to correspondent banks that are mostly located in that country.

Sought for comment, China Banking Corp. chief economist Domini Velasquez said remittances were set to increase due to high demand for Filipino labor.

Anticipated wage hikes in Hong Kong and Taiwan this year, she added, are also poised to contribute to remittance growth.

ING Manila Bank senior economist Nicholas Antonio Mapa, who also expects remittances to continue growing, said the inflows would support domestic consumption and help mitigate the impact of a persistent trade deficit.

Rizal Commercial Banking Corp. chief economist Michael Ricafort, meanwhile, said high inflation likely spurred OFWs to send more money to families back home.

"The continued and consistent growth in OFW remittances could be attributed to higher prices locally that required the sending of more OFW remittances back to the country," he said.

"For the coming months, modest growth in OFW remittances could continue as OFW dependents still need to cope with relatively higher prices locally that would require the sending of more remittances."

Last month, the World Bank said that OFW remittances could hit a new high of $40 billion in 2023, growing by more than 5 percent compared to just 3.6 percent in 2022 when money sent home from abroad hit a record $36.14 billion.