Remittances received from abroad from relatives and friends have increased rapidly and totalled $606.4 million in 2021, a Samoa Bureau of Statistics report has revealed. 

The data on remittances sent by relatives and friends living abroad were highlighted in a SBS report titled “National Accounts Aggregates Annual Analysis 2021.”

The publication presented a summary of the principal national accounting aggregates at current prices based on official national accounts data that were compiled, published and disseminated for Samoa on an annual calendar basis. 

According to the report, “current transfers better known as remittances received from abroad through relatives, friends has increased rapidly in the previous years.”

“It recorded a total value of $606.4 million for 2021 compared to the $544.5 million acquired in the year 2020,” reads the report.

According to the S.B.S. authored report, the rapid increase in current transfers into the county is a strong indicator of the contribution made by locals who travelled abroad, under Seasonal Employment Schemes to New Zealand and Australia better provide financially for families.

“For more than six years, current transfers has increased significantly thus improving the level of [Gross National Disposable Income] GNDI as a whole.”

The latest report issued by the Central Bank of Samoa on the status of remittances for March 2022 showed that the total inflow increased by 5.6 per cent or $2.9 million to $54.8 million over the year and was 1.3 per cent higher (or $0.7 million) when compared to the previous month.

“Underpinning the overall expansion in private remittances over the year were increases in funds received from Australia (up by $6.4 million), New Zealand (up by $0.4 million) and ‘Others’ (up by $0.01 million).”

In terms of funds received by recipients, the funds for ‘family and households’ went up from $9.2 million to $52.14 million while offsetting reductions in all other recipients.

“Similarly, the total inflow of remittances in the first nine months of Financial Year 2020/2021 expanded by 16.4 per cent (or $74.9 million) to $533.4 million over the same period last year.

“Largely responsible for this sharp increase were higher transfers from Australia (up by $43.7 million), New Zealand (up by $23.5 million), United States (up by $12.4 million) and American Samoa (up by $1.5 million).” 

Total funds for the ‘family and households’ and 'in kind’ both shot up by $83.9 million and $2.7 million respectively. 

However, the monthly share of total remittances inflows received directly through Money Transfers Operators (MTO’s) contracted to 84.2 per cent from 90.6 per cent in March 2021, whilst funds received directly through commercial banks rose to 15.8 per cent from 9.4 per cent in the same month last year. 

The average monthly cost of sending NZD$200 to Samoa was around 7.01 per cent of total funds, the same as in February 2021. On the other hand, the average cost of sending AUD$200 to Samoa was around 5.55 per cent of total funds.