Remittances hit US$3.2B in July

Cash remittances from overseas Filipinos (OFs) reached US$3.18 billion in July, up 3 percent from the US$3.08 billion recorded in the same month last year, the Bangko Sentral ng Pilipinas (BSP) reported.

Sea-based workers posted a slightly faster growth of 3.1 percent, sending home US$585 million, while land-based workers accounted for the bulk at US$2.59 billion, also higher by 3 percent year-on-year.

For the first seven months of 2025, cumulative cash remittances climbed to US$19.93 billion, a 3.1 percent increase from US$19.33 billion in the comparable period of 2024.

Economists noted that the sustained inflows remain critical to the country’s growth trajectory.

“This 3 percent remittance growth to US$22.21 billion is economically vital for the Philippines, where overseas worker funds comprise roughly 8–10 percent of GDP,” SM Investment Corporation economist Robert Dan Roces told DAILY TRIBUNE, noting that cumulative personal remittances for January to July likewise rose 3.1 percent to US$22.21 billion.

The United States remained the top source of remittances, followed by Singapore and Saudi Arabia.

The steady rise in cash remittances also lifted personal remittances – which include money sent through banks, informal channels, and in-kind transfers – by 3.1 percent to US$3.53 billion in July.

“The steady dollar inflow directly bolsters household spending power for millions of families while helping stabilize the peso against external shocks from oil price volatility and trade deficits,” Roces added.

“Though the growth rate is modest compared to pre-pandemic levels, these remittances remain a crucial economic lifeline, as they support both consumer-driven GDP growth and foreign exchange reserves – even as they highlight the country’s persistent reliance on exported labor rather than robust domestic job creation.”

For his part, Michael Ricafort, chief economist at Rizal Commercial Banking Corporation, pointed out that July’s figure represented the highest monthly remittance inflow in seven months, or since December 2024, when a record US$3.379 billion was logged.

“This also marked the third-highest monthly level on record, amid the seasonal increase in tuition payments and other school opening–related expenses for the new academic year, which reverted back to June,” Ricafort said.

“The relatively higher US dollar/peso exchange rate after the 12-day conflict between Israel and Iran also provided an opportunity for some OFWs and their families to convert remittances to pesos.”

With remittances continuing to underpin household spending and foreign exchange stability, analysts see them remaining a cornerstone of the Philippine economy – even as the challenge of generating strong domestic employment persists.