Remittances growth hit 5-mo high of 3.7% in Sept
Money sent home by Filipinos abroad posted its fastest growth in five months in September, driven by seasonal increase in remittances at the onset of the so-called “ber” months, which mark the start of the world’s longest Christmas celebration.
Cash remittances coursed through banks rose by 3.7 percent year-on-year to $3.12 billion, the Bangko Sentral ng Pilipinas (BSP) reported on Monday. This marked the briskest expansion since April 2025, when such fund transfers grew by 4 percent.
In the first nine months, overseas Filipinos sent home $26 billion in cash cushions, up by 3.2 percent from the same period last year. At this point, average remittance growth is running slightly above the central bank’s full-year forecast of 3 percent for 2025, continuing to be a vital source of fuel for the country’s consumption-driven economy.
“The onset of ‘ber’ months marks the start of the holiday season for Filipinos,” Reinielle Matt Erece, an economist at Oikonomia Advisory & Research Inc., said. “Thus, we may expect OFWs to send in their earnings to their families here for the celebrations and gatherings.”
Labor demand
Beyond seasonality, strong labor demand in key host economies, particularly in the Middle East, also supported inflows, said Robert Dan Roces, group economist at SM Investments Corp.
The local currency’s weakness, which can increase the peso value of remittances, provided only a modest conversion boost, he added. The peso has hovered near the 58 to 59 range in recent weeks amid growing downside risks to local economic growth, which was dampened by governance issues and severe weather disruptions.
“The peso may remain under pressure from a firm US dollar and lingering political noise, so any foreign exchange-related lift to remittances could be limited and will not offset broader risks to inflation and sentiment,” Roces said.
The United States remained the single largest source of remittances in the January-to-August period, accounting for 40.4 percent of the total, the central bank said. But that figure comes with a caveat: many remittance centers abroad route their transfers through correspondent banks based in the US, inflating America’s share.
This was followed by Singapore with a 7.1-percent share, and Saudi Arabia, where 6.4 percent of inflows came from.
Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said the BSP’s 3-percent remittance growth forecast for the year “looks well within reach.”
“For the fourth quarter, expect remittances to stay resilient and peak in December,” he added.
