OFW remittances rise 2.7% in February, support economic growth

Personal remittances from overseas Filipino workers (OFWs) posted a 2.7 percent increase in February 2025, reaching USD2.72 billion from USD2.65 billion a year ago, according to the Bangko Sentral ng Pilipinas (BSP).

Including in-kind transfers, total personal remittances amounted to USD3.02 billion, up from USD2.95 billion in February 2024.

For the first two months of 2025, total cash remittances coursed through banks reached USD5.63 billion, also up by 2.8 percent from the same period last year. Personal remittances, which include both cash and in-kind transfers, climbed to USD6.10 billion, showing a 2.7 percent annual growth.

Despite global economic uncertainties, BSP data underscores the resilience of remittance inflows—a key pillar of the Philippine economy.

Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort noted that while the outlook remains generally positive, potential external headwinds could affect future inflows.

He cited the possible impact of renewed protectionist policies under the Trump administration in the United States, including higher tariffs and stricter immigration rules, which may weigh on global employment and, in turn, remittance growth.

“Trump’s threats of higher tariffs and America-first policies could slow down global trade, investments, and employment, including some OFW jobs,” Ricafort said. “That could indirectly temper the growth in OFW remittances from various host countries.”

Nonetheless, Ricafort stressed that the Philippines’ strong presence in sectors like seafaring and healthcare continues to support a stable stream of remittances, which remain a crucial driver of domestic consumption.

“Total OFW remittances account for nearly 10 percent of the country’s GDP, providing income, spending power, and economic resilience for many Filipino families,” he added.

Consumer spending, which makes up over 70 percent of the Philippines’ gross domestic product (GDP), continues to benefit from robust remittance inflows, helping to fuel economic growth amid global uncertainties.