Overseas Filipino Remittances Surge to A Record High of US$35.6 Billion in 2025

Filipinos working abroad sent back home to the Philippines a record US$35.63 billion in cash remittances in 2025, according to data from the Bangko Sentral ng Pilipinas (BSP).

The figure represents a 3.3% increase from 2024 and surpasses the central bank’s official growth projections for the year.

In December alone, inflows reached an all-time high of US$3.52 billion, marking the fastest monthly growth in three years at 4.2%.

This year-end surge was largely driven by seasonal factors, including the release of bonuses and increased holiday spending.

The inflows provided a significant boost to the national economy, accounting for 7.3% of the country’s gross domestic product (GDP) and 6.4% of its gross national income (GNI).

These funds supported essential household costs, including consumption, housing, and services, even as broader economic growth slowed to 4.4% in 2025.

The United States remained the primary source of remittances to the Philippines in 2025, contributing 39.7% of the total, followed by Singapore at 7.3% and Saudi Arabia at 6.6%.

The central bank observed that the frequent routing of funds through American correspondent banks by international institutions often inflates the US figure.

Regarding worker categories, land-based employees accounted for 80.4% of the December total, while sea-based workers contributed 19.6%.

Looking ahead, the central bank forecasts that cash remittances will grow to US$36.6 billion in 2026.

Despite this positive outlook, analysts point to potential risks such as a proposed 1% remittance tax in the US, which could increase transfer costs and eventually slow formal inflows.

Personal remittances, a broader measure that includes informal channels and goods, also reached a historic peak of US$39.62 billion for the full year.

Featured image: Edited by Fintech News Philippines based on images by inkoly and patcharin.in via Freepik.

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