OFW cash remittances hit six-month high in June

Cash sent home by overseas Filipino workers (OFWs) surged to a six-month high in June, rising 3.7 percent year-on-year to $2.987 billion, buoyed by seasonal school-related expenses and a stronger peso that prompted households to request more dollars to cover tuition and other costs.

The June figure was the highest since the record $3.38 billion posted in December 2024 and marked an acceleration from the 2.5-percent growth seen in June last year. The Bangko Sentral ng Pilipinas said the robust inflows remain a bright spot for the economy, fueling consumer spending that accounts for about 68 percent of gross domestic product (GDP).

Land-based workers accounted for $2.43 billion, or 81.3 percent of total remittances, up 3.7 percent year-on-year, while sea-based workers sent $550 million, an increase of 3.5 percent.

The peso averaged in the P56-per-dollar range in June, closing the month at P56.33 – 3.9 percent stronger than a year ago but slightly weaker compared to end-May. The currency’s appreciation in recent months has led OFWs to remit more foreign currency to meet peso-denominated expenses, especially ahead of the new school year, which reverted to a June start.

“June remittances reflect the seasonal pattern tied to tuition payments and other school opening expenses, alongside vacation spending by OFWs and their families,” economist Michael Ricafort said.

Despite headwinds such as the slower US and global economy, ongoing geopolitical tensions in the Middle East, and potential dampening effects of US President Donald Trump’s policies – including a proposed 1-percent tax on remittances sent by non-residents – remittances have remained resilient.

From January to June 2025, cash remittances totaled $16.753 billion, up 3.1 percent from the same period in 2024, already surpassing the government’s full-year growth target of 2.8 percent.

Remittances remain a cornerstone of the Philippine economy, equivalent to nearly 10 percent of GDP when accounting for the World Bank’s estimate of $40 billion in total inflows. The US remains the largest source, followed by strong contributions from Singapore, Saudi Arabia, the UAE, Qatar, Taiwan, and Hong Kong.

Economists expect remittances to maintain steady growth in the near term, supported by the country’s position as the world’s leading source of seafarers and nurses. However, they warn that protectionist measures, tighter immigration policies, and global economic uncertainties could temper future gains.