Personal remittances from overseas Filipinos (OFs) rose by 2.6 percent year-on-year to USD3.13 billion in March this year, up from USD3.05 billion in March 2024, according to data released by the Bangko Sentral ng Pilipinas (BSP). The steady increase underscores the sustained confidence in the Philippine economy and supports robust domestic consumption, a key driver of local output growth or the gross domestic product (GDP).
The BSP attributed the growth to increased remittances from both land-based and sea-based workers, which continue to serve as a critical pillar of the country’s foreign exchange inflows and macroeconomic resilience.
For the first quarter of 2025, cumulative personal remittances reached USD9.40 billion, marking a 2.7 percent increase from USD9.15 billion recorded in the same period last year. Cash remittances coursed through banks, which comprise the bulk of remittance transactions, also posted a similar 2.7 percent growth to USD8.44 billion from USD8.22 billion a year ago.
According to the BSP, the United States, Singapore, Saudi Arabia, and the United Arab Emirates were the main sources of the increase in remittance inflows. The U.S. remained the top contributor to cash remittances during the January–March 2025 period, followed by Singapore and Saudi Arabia. However, the BSP noted that the U.S. share may be overstated due to the prevalent use of correspondent banks and remittance centers headquartered in the country.
Remittances continue to play a vital role in bolstering the Philippine economy by supporting domestic demand, improving the country’s balance of payments, and providing a buffer against external shocks. The BSP monitors these inflows closely as they inform monetary and foreign exchange policy, especially amid global economic uncertainties.
The central bank remains optimistic that the remittance sector will sustain its upward momentum in the coming months, in line with the global labor demand for Filipino workers and the government’s proactive deployment programs.
