Remittances from Overseas Filipino Workers (OFWs) rose 2.7% year-on-year to $2.72 billion in February 2025, according to the Bangko Sentral ng Pilipinas (BSP).
Total personal remittances, which include in-kind transfers, reached $3.02 billion, reflecting a 2.6% increase from $2.95 billion in the same month last year.
For the first two months of the year, cash remittances amounted to $5.63 billion, a 2.8% rise compared to the same period in 2024.
Meanwhile, personal remittances grew by 2.7% to $6.10 billion, underscoring the continued strength of remittance inflows as a major contributor to the Philippine economy.
Despite the positive growth trend, RCBC chief economist Michael Ricafort warned that challenges could arise in the months ahead. He pointed to the potential impact of protectionist measures, particularly under former U.S. President Donald Trump’s administration, including higher tariffs and “America-first” policies.
Ricafort noted that these could indirectly slow down global trade, investments, and employment, potentially affecting OFW jobs and remittance growth from various countries.
However, Ricafort emphasized that the Philippines remains a key source of seafarers and healthcare professionals, sectors that are likely to continue driving remittance inflows.
“Total OFW remittances account for nearly 10% of the country’s GDP, playing a crucial role in supporting domestic consumer spending, which represents more than 70% of the economy,” he said. (PNA)
