According to the Bangko Sentral ng Pilipinas (BSP), cash remittances from overseas Filipino workers (OFWs) grew by 3.7 percent in September, marking the fastest increase in five months.
Steady Growth
BSP data showed that cash remittances reached $3.12 billion in September from $3.01 billion in the same month last year. This brought the nine-month total to $26.03 billion: a 3.2 percent increase from $25.23 billion in the same period of 2024.
Economists attributed the growth to steady overseas hiring, normalized deployments in the Middle East, and households beginning to prepare for school and holiday expenses.
SMIC group economist Robert Dan Roces added that the peso’s depreciation in September provided a small boost, as a dollar converted to slightly more pesos, though it was not a major factor.
Meanwhile, Oikonomia economist Reinielle Matt Erece noted that the start of the “Ber” months often triggers early remittances, as OFWs send money home for celebrations and family gatherings. Furthermore, she expects inflows to rise further in October and December before stabilizing after the New Year.
Largest Sources
The United States remained the largest source of remittances, followed by Singapore and then by Saudi Arabia. The BSP explained that many transactions route through American correspondent banks, which explains their dominance in official records.
On the other hand, personal remittances, which also include informal transfers and goods sent home, reached $3.46 billion in September, up 3.8 percent from $3.34 billion a year ago. The nine-month cumulative total for personal remittances almost reached $29 billion, marking a 3.2 percent increase.
Economists expect remittance growth to remain in the three-to-four-percent range for the rest of the year. The BSP projects cash remittances to reach $35.5 billion this year and $36.6 billion in 2026, despite potential pressures from a firm dollar and political uncertainty.
