Overseas Filipinos’ remittances dip to $2.97 billion in April 2025

This is AI generated summarization, which may have errors. For context, always refer to the full article.

While April's remittance inflow is slower than March, it is 4% higher year-on-year amid the peso's appreciation versus the US dollar

MANILA, Philippines – Remittances sent home by Filipinos abroad dropped to an 11-month low in April, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Overseas Filipinos sent home $2.97 billion in April, bringing cumulative remittances this year to $12.01 billion. This is 3% higher than remittances sent during the same period in 2024.

Despite dropping from March’s $3.13 billion inflow, remittances grew 4.1% year-on-year from April 2024.

Image from Bangko Sentral ng Pilipinas

Cash remittances coursed through banks grew 4% to $2.66 billion. Money sent home by overseas Filipinos in the United States, Saudi Arabia, Singapore, and the United Arab Emirates continued to drive the increase in cash remittances.

Image from Bangko Sentral ng Pilipinas

The US still accounted for the largest share of total cash remittances this year, followed by Singapore and Saudi Arabia.

The US appears to be the main source of overseas Filipino remittrances since the common practice of remittance centers abroad is to course the remittances through correspondent banks, most of which are in the US.

Around 4.2 million Filipinos live in the US, which is the top destination of Filipino migrants. The US accounted for roughly 40% of the 10 million Filipinos overseas in 2022, followed by Saudi Arabia (9.6%) and Malaysia (8.8%), according to the Foreign Service Institute-Department of Foreign Affairs.

Higher cost of living in host countries?

For Rizal Commercial Banking Corporation chief economist Michael Ricafort, the steady year-on-year growth in remittances is a bright spot for the Philippine economy as this is an important growth driver for consumer spending. This accounts for nearly 75% of the Philippines’ economic activity.

Ricafort pointed out that remittances may have grown year-on-year due as overseas Filipino workers (OFWs) fund the vacations and fiesta celebrations of their families back home. They may have also sent more money home to pay for tuition fees and other expenses tied to the opening of classes.

Some of the money may have also gone to funding OFWs’ trips home.

Ricafort said that the appreciation of the peso may have also contributed to the stronger remittance growth. BSP data show the peso closed at P55.84 against the greenback in April, P1.37 higher than in March.

“The net appreciation of the peso to the strongest in about eight months somewhat necessitated the sending of more remittances, also partly to finance Holy Week holiday-related spending, as well as vacation spending during the summer or school break,” he said.

However, the single-digit growth may have been tempered by inflation in the US and the global markets, which may have increased the cost of living for Filipinos in their host countries.

Ricafort also said that US President Donald Trump’s protectionist and anti-immigration policies may slow down remittance growth.

“Trump’s threats of higher tariffs/reciprocal tariffs and other America-first policies could also slow down global trade, investments, employment including some OFW jobs, and overall world economic/GDP growth, thereby could also indirectly slow down the growth in OFW remittances from other countries around the world,” he said. – Rappler.com