‘The faster and continued single-digit year-on-year growth in OFW remittances is a bright spot for the overall economy as an important growth driver, especially in terms of consumer spending, which accounts for about 73 percent of the Philippine economy, thereby supporting faster economic growth in the fourth quarter.’
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Cash remittances from overseas Filipino workers (OFWs) reached $3.17 billion in October 2025, a slight increase from September’s $3.12 billion, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.
RCBC chief economist Michael Ricafort noted that the October figure represents a 2.7 percent increase from the same month last year, adding that the sustained rise in remittances signals positive momentum for the economy.
Bright spot
“The faster and continued single-digit year-on-year growth in OFW remittances is a good signal [or a] bright spot for the overall economy as an important growth driver, especially in terms of consumer spending, which accounts for about 73 percent of the Philippine economy, thereby [supporting] faster economic [or] GDP (gross domestic product) growth in the fourth quarter,” Ricafort said.
Attractive for OFWS to convert earnings to pesos
He added that a strengthening US dollar, combined with political noise from the Trillion Peso March and Baha sa Luneta anti-corruption rallies in September, “made it more attractive” for OFWs to convert their earnings into pesos to finance household spending in the Philippines.
For the first 10 months of 2025, remittances totaled $29.20 billion, with the United States remaining the top reported source of foreign exchange inflow, accounting for 42.3 percent or roughly $12.35 billion.
The BSP noted, however, that several structural factors distort the apparent dominance of US-sourced remittances.
Many foreign remittance centers route funds through correspondent banks headquartered in the United States, and money couriers often record transfers based on the location of their head offices — frequently the US — rather than the country where the remittance actually originated.
As a result, remittances appear disproportionately attributed to the United States.
Trump’s tariff policies
Ricafort said that a slowing US and global economy amid President Trump’s tariff policies may have dampened OFW remittance volumes earlier this year.
