OFW remittances hit 6-month high in June

 

Keisha Ta-Asan - The Philippine Star 

August 16, 2025 | 12:00am

MANILA, Philippines — Money sent home by overseas Filipino workers (OFWs) climbed to its highest level in six months in June, boosted by steady demand for Filipino labor abroad and seasonal household spending needs.

Data from the Bangko Sentral ng Pilipinas (BSP) showed that cash remittances rose by 3.7 percent to $2.99 billion in June from $2.88 billion in the same month last year.

“Cash remittances to the Philippines continued to grow in June of this year, with remittances from land-based overseas Filipinos increasing faster than funds from sea-based overseas Filipinos,” the central bank said.

Land-based workers sent $2.43 billion during the month, growing faster at 3.7 percent year-on-year compared to the 3.5-percent increase from sea-based workers, which totaled $555 million.

For the first half, cumulative cash remittances rose by 3.1 percent to $16.75 billion from $16.25 billion a year ago.

Personal remittances, which include both formal and informal channels as well as remittances in kind, grew by 3.7 percent to $3.33 billion in June. This brought total personal remittances to $18.67 billion in the first semester, 3.1 percent higher than a year ago.

Philippine Institute for Development Studies senior research fellow John Paolo Rivera said the uptick reflects continued strong demand for Filipino workers abroad, especially in health care, construction as well as services in the United States, Middle East and Asia.

“Seasonality, particularly mid-year education and household expenses, also likely contributed,” Rivera said.

The BSP said the growth in cash remittances from the US, Singapore and Saudi Arabia mainly contributed to the increase in remittances in the first half.

In terms of country sources, the US posted the highest share of overall remittances during the period with 40.1 percent, followed by Singapore (7.1 percent), Saudi Arabia (6.2 percent), Japan (five percent) and the United Kingdom (4.9 percent).

However, Rivera said risks remain in the second half.

He cited global economic uncertainties, currency volatility and potential policy shifts such as the proposed US remittance tax that could temper inflows.

Likewise, geopolitical tensions and rising costs of living in host countries may also affect the sending capacity of OFWs.

The BSP sees cash remittances increasing by 2.8 percent this year and by three percent next year.