OFW remittances continue to climb

Despite global uncertainties

MANILA, Philippines — Cash remittances from overseas Filipinos continued to post modest growth in March, supporting household spending and the Philippine economy despite mounting global uncertainties and slower growth in key labor markets abroad.

Data released by the Bangko Sentral ng Pilipinas (BSP) showed that cash remittances coursed through banks reached $2.87 billion in March, up by 2.3 percent from $2.81 billion in the same month last year.

Including transfers sent through informal channels and in kind, personal remittances increased to $3.2 billion, likewise growing by 2.3 percent from $3.13 billion a year ago.

For the first quarter, cumulative cash remittances expanded by 2.8 percent to $8.68 billion, while personal remittances rose by 2.8 percent to $9.66 billion.

The BSP said the United States remained the largest source of remittances to the Philippines in the January-to-March period, followed by Singapore and Saudi Arabia. 

Remittances remain one of the country’s key economic buffers, helping sustain household consumption while providing a stable source of foreign exchange inflows that support the peso and help finance the country’s trade deficit.  

Based on BSP data, cash remittances accounted for about 7.4 percent of gross domestic product, while personal remittances made up around 8.2 percent.

Growth in remittances, however, continued to ease at the end of the first quarter. At 2.3 percent in March, cash remittances growth was slower than the 2.6 percent expansion in February. 

UnionBank chief economist Ruben Carlo Asuncion said the slower pace of growth reflected normalization after the strong inflows recorded toward the end of last year, as well as rising global challenges affecting overseas Filipino workers (OFWs).

“The softer growth in remittances largely reflects normalization after the strong year-end inflows in 2025, alongside emerging global headwinds such as slower growth, elevated inflation and geopolitical uncertainties affecting OFWs’ disposable income,” Asuncion said.

 “While deployment and employment abroad remain broadly stable, these external pressures are likely capping growth in the near term,” he added.

 Despite the moderation, Asuncion said remittance flows are expected to remain resilient in the coming months.

“Moving forward, we expect remittances to remain resilient but to expand at a more modest pace — likely in the low single digits — supported by steady overseas demand for Filipino workers and seasonal spending patterns, but tempered by global economic conditions,” Asuncion added.

Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., likewise said March remittances reflect cooling global labor markets, higher base effects and rising living costs abroad, which are limiting how much OFWs can send home.

 But remittances are still expected to remain stable in the coming months, with seasonal spending likely to support growth later in the year. 

“Looking ahead, I expect steady but modest growth in the near three percent range, with some upside during the second half from seasonal spending and potentially easing global inflation,” he said. 

Ravelas said remittances would remain a key support for household consumption, but are unlikely to drive faster growth on their own, making stronger investment and domestic demand more important for the economy’s expansion.

The BSP expects cash remittances to grow by three percent this year and in 2027. Cash remittances went up by 3.3 percent to hit a record high of $35.63 billion in 2025 from $34.49 billion in 2024.