Cash remittances from overseas Filipinos rose 3 percent year-on-year to $13.77 billion in the first five months of 2025, not far above the slower 2.8 percent projection for the entire year by the central bank given increasing protectionist barriers, stricter immigration policies and geopolitical uncertainties.
The five-month cumulative amount of remittances was up from $13.37 billion a year earlier, the Bangko Sentral ng Pilipinas (BSP) said on Tuesday.
The BSP flagged emerging risks—including the impact of heightened US trade tensions and protectionist policies on remittance growth for the rest of the year.
US remains biggest source
The United States remained the largest source of cash remittances, accounting for 40.2 percent of total inflow into the country during the January-May period.
BSP officials cited a common practice among remittance centers of routing transactions via US-based correspondent banks, amplifying America’s share. Other major origins were: Singapore, 7.4 percent; Saudi Arabia, 6.4; Japan, 5 percent; United Kingdom, 4.6 percent; and United Arab Emirates, 4.2 percent.
2025 slowdown seen
The BSP projects cash remittances for full-year 2025 will expand by just 2.8 percent —slightly slower than last year’s 3 percent—due to rising protectionist barriers, stricter immigration policies and geopolitical uncertainty such as the Israel-Iran conflict.
The Trump Administration’s reinstatement of tariffs and a newly imposed 3.5 percent tax on US remittance transfers by non-residents could dampen volumes, an economist warned.
These measures, paired with a stronger peso—which hovered around 55.74 to the dollar in May—may reduce the nominal dollar amount required to fund peso-denominated expenses, resulting in more moderate remittance values.
RCBC Chief Economist Michael Ricafort noted: “OFW cash remittances, while still growing at single-digit rates, remain a bright spot for the Philippine economy, particularly for consumer spending, which contributes roughly 75 percent to GDP. But the global slowdown triggered by the US trade wars and broader geopolitical risk could dampen future remittance performance.”
The BSP remains cautiously optimistic, citing sustained demand for Filipino labor abroad, particularly in the services and sales sectors. However, it said, continued monitoring of US policy shifts and their ripple effects on global mobility will be critical.
