Cash remittances from overseas Filipino workers (OFWs) continued their upward trend, growing by 2.9 percent year-on-year in May to reach $2.66 billion, according to the Bangko Sentral ng Pilipinas (BSP). The increase brought total cash remittances for the first five months of 2025 to $13.77 billion, reflecting a three percent expansion compared to the same period last year.
The growth was driven in part by stronger deployments of sea-based workers, who remitted $536 million in May, marking a 3.1 percent increase. Land-based workers, meanwhile, sent $2.12 billion, a 2.8 percent rise.
Personal remittances—which include both banked and non-banked channels—also saw a three percent year-on-year growth, totaling $15.34 billion from January to May.
“The peso depreciation is boosting foreign exchange gains, and the increased adoption of digital wallets and fintech solutions is making sending money more accessible,” said Jonathan Ravelas, senior adviser at Reyes Tacandong & Co. He remained optimistic that remittances could maintain a three percent growth by year-end, although he noted that this may taper to 2.7 percent without expansion into new labor markets.
“Global demand for Filipino labor remains, but we need to pivot to other areas like the European Union and Southeast Asian states,” he added.
Despite the gains, analysts warned of significant headwinds on the horizon. Economist Reinielle Matt Erece of Oikonomia Advisory & Research Inc. noted that May tends to post slower remittance growth due to seasonal factors. The 2.9 percent increase was lower than the four percent growth recorded in April.
Erece cautioned that upcoming policy changes abroad—such as tighter immigration laws and the recently announced US remittance tax—could put pressure on future remittance flows.
The situation is further complicated by a new trade measure from the United States. Beginning August 1, all Philippine exports to the US will face a 20-percent tariff, a move announced by President Donald Trump that could disrupt the country’s economic momentum and discourage foreign investment.
“For businesses, this is a time to consider diversifying export markets, exploring US-based manufacturing partnerships, and leveraging Southeast Asian trade networks,” Ravelas advised.
He also called on the Philippine government to act swiftly by fast-tracking free trade agreement negotiations, offering transitional support to impacted industries, and investing in infrastructure that facilitates international trade.
Ravelas warned that the broader implications of the tariff could include inflationary pressures and a more volatile peso, both of which could diminish the real value of remittances and dampen household spending back home.