OFW remittances rise 2.6% in March, boosting household spending

Cash remittances from overseas Filipino workers (OFWs) climbed by 2.6 percent in March 2025, reaching USD2.81 billion from USD2.74 billion during the same month last year, the Bangko Sentral ng Pilipinas (BSP) reported Thursday.

Including in-kind transfers, total personal remittances for the month also rose by 2.6 percent to USD3.13 billion, up from USD3.05 billion in March 2024. Both land-based and sea-based workers contributed to the uptick.

For the first quarter of 2025, cash remittances totaled USD8.44 billion, while personal remittances stood at USD9.40 billion—each reflecting a 2.7 percent increase year-on-year.

"The growth in cash remittances from the United States, Singapore, Saudi Arabia, and the United Arab Emirates was the main driver of the overall increase in remittances during January–March 2025," the BSP noted.

The United States remained the top source of cash remittances, followed by Singapore and Saudi Arabia, continuing long-standing trends in OFW deployment.

Economists said the sustained growth in remittance inflows continues to support the Philippine economy, especially in terms of consumer demand.

“Total OFW remittances account for nearly 10 percent of the country’s economy as an important contributor to consumer spending, which makes up nearly 75 percent of the GDP,” said Michael Ricafort, chief economist at Rizal Commercial Banking Corporation. “This also serves as a key source of income, wealth, and purchasing power for millions of Filipino households.”

The steady increase in remittances remains a critical pillar of the country’s economic resilience, helping cushion the impact of external headwinds while driving domestic consumption.