Manila: Strong inflows from land-based overseas Filipino workers (OFWs) boosted cash remittances in June 2025 to USD2.99 billion, reflecting a 3.7 percent increase from USD2.88 billion during the same month last year. The Bangko Sentral ng Pilipinas (BSP) reported that inflows from land-based overseas workers rose by 3.7 percent year-on-year in June to USD2.43 billion, while remittances from sea-based workers also increased, climbing 3.5 percent to USD555 million.
According to Philippines News Agency, cash remittances in the first half of 2025 totaled USD16.25 billion, marking a 3.1 percent rise from USD15.75 billion a year earlier. By country of origin, the bulk of remittances came from the United States (40.1 percent), followed by Singapore (7.1 percent) and Saudi Arabia (6.2 percent). During the same period, personal remittances, which include in-kind items sent home by OFWs, rose 3.7 percent in June to USD3.33 billion, with the end-June growth standing at 3.1 percent to USD18.67 billion.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort emphasized the significance of the remittance growth, noting that despite remaining in single digits, it is a positive indicator for the economy. Remittances continue to serve as a key driver of growth, particularly through consumer spending, which accounts for about 68 percent of domestic economic activity. Ricafort highlighted that the 3.7 percent rise in cash remittances in June was the highest monthly inflow in the past six months, since the record USD3.38 billion posted in December 2024.
Ricafort also addressed the potential impact of US protectionist policies on remittances from the US, but pointed out that the latest data showed above-average growth of inflows from other regions, including Singapore, Saudi Arabia, the UAE, Qatar, Taiwan, and Hong Kong. He noted that remittances to the Philippines have consistently ranked as the fourth largest worldwide, following India, Mexico, and China, due to strong demand for skilled OFWs such as seafarers and medical professionals.
