Filipinos Abroad Lift Country Anew with 7-Month High Remittance of US$3.2B in July

Overseas Filipinos (OFs) once again buoyed the Philippine economy after sending a total of US$3.179 billion in cash remittances coursed through banks in July, marking a seven-month high for the year, according to a report released by the Bangko Sentral ng Pilipinas (BSP).

Most of the personal remittances came from workers with contracts of one year or longer, amounting to US$2.81 billion, up 3 percent year on year. (Photo: UK Skills Partnership) 

The government defines OFs as: a) permanent residents—Filipino immigrants or legal permanent residents abroad whose stay does not depend on work contracts; and b) overseas Filipino workers (OFWs)—temporary workers whose stay overseas is employment-related and who are expected to return at the end of their contracts, as well as irregular workers.

According to the BSP, cash remittances in July 2025 rose by 3.0 percent from US$3.08 billion in July 2024. Month on month, remittances grew 7 percent from US$2.987 billion in June.

“The Philippines saw sustained growth in cash remittances in July, with remittances from sea-based overseas Filipinos increasing slightly faster than funds from land-based OFs,” the BSP said in a statement.

Of the July total, land-based OFs accounted for US$2.59 billion (up 3.0 percent year on year), while sea-based OFs contributed US$585 million (up 3.1 percent).

From January to July 2025, cumulative cash remittances reached US$19.932 billion, up 3.1 percent from US$19.332 billion in the same period in 2024.

Of this, land-based workers sent US$15.97 billion, while sea-based workers contributed US$3.96 billion.

Meanwhile, personal remittances—which include cash sent through banks, informal channels, and in-kind transfers—rose 3.1 percent to US$3.53 billion in July 2025 from US$3.43 billion in July 2024.

For the first seven months of the year, personal remittances totaled US$22.206 billion, up 3.1 percent from US$21.532 billion a year earlier.

Most of the personal remittances came from workers with contracts of one year or longer, amounting to US$2.81 billion, up 3 percent year on year. Those with contracts of less than one year sent home US$650 million, up 3.3 percent.

Top Sources of Remittances

Filipinos in the United States accounted for 40.3 percent of total cash remittances in the January–July 2025 period. This was followed by Singapore (7.1 percent), Saudi Arabia (6.2 percent), and Japan (5 percent).

Other top sources included the United Kingdom (4.8 percent), United Arab Emirates (4.4 percent), Canada (3.4 percent), Qatar (2.9 percent), Taiwan (2.8 percent), and South Korea (2.7 percent).

Factors Behind the Increase

Analysts cited several factors behind the increase in remittances:

• The peso’s relative weakness against the US dollar, which increased the peso value of funds sent home.

  
  

• The start of the school year, which boosted family needs for tuition and school expenses.

  
  

• The impact of monsoon rains and typhoons, which may have prompted OFs to send more money for housing repairs and recovery.

  
  

• Higher global demand for overseas labor and improving job conditions abroad.

  
  

The BSP expects cash remittances to grow by 2.8 percent this year, reaching US$35.5 billion.

Analysts also expect remittances to stay resilient for the rest of the year, especially with the Christmas season approaching.

In 2024, OFs sent a record US$38.3 billion, equivalent to 8.3 percent of the country’s gross domestic product (GDP), according to the BSP. Remittances have long played a crucial role in sustaining household consumption, supporting investments, and stabilizing the Philippine economy.