June 16, 2025 — In a report by Bangko Sentral ng Pilipinas (Central Bank of the Philippines), remittances from overseas Filipino workers (OFWs) grew by three percent to an all-time high of US$3.73 billion in December 2024 from US$3.62 billion in the same period in 2023.
Overall, total remittances also reached a record high of US$38.34 billion in 2024, again higher by three percent compared to US$37.21 billion the previous year. The 2024 number represents over eight percent of the country’s gross domestic product and over seven percent of its gross national income.
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In a paper for GlobalSource Partners, former BSP governor Diwa Guinigundo and co-author Wilhelmina Manalac predict that remittances “appear promising given the recovery of many advanced economies” where most OFWs are based. For 2025, these economies are expected to expand at a rate of 1.8 percent.
GlobalSource Partners is forecasting remittance growth in 2025 to rise by at least three percent, driven by factors such as stable job markets for Filipino workers in the healthcare, IT, hospitality and skilled trades sectors particularly in Canada, the US and the Middle East.
The GlobalSource Partners’ projection is supported by the World Bank’s forecast that global remittances are expected to grow by 2.8 percent. This growth, according to the World Bank, is driven by factors like widening income disparities, demographic pressures and impacts of shifting global weather patterns which all lead to increased migration for economic opportunities.
Guinigundo and Manalac note that remittances provide families of OFWs their daily expenditures, housing payments, tuition and expenses for milestone celebrations - all contributing to the steady rise in remittance flows over the years.
The analysts added, “OFW remittances have supported the country’s current account by mitigating the chronic deficit recorded during the period…In many ways, OFW remittances help stabilize volatile capital flows and the peso-dollar exchange rate.” However, they caution that the reversal of the situation in advanced economies may not bode well for overseas employment and remittances.
A 2023 report by Western Union revealed that the Philippines placed second only to India as a top recipient country for remittances. China followed in third. The same report also showed that on average, immigrants were found to send nine percent of their annual income as remittance, with primary reasons being to support their families with the cost of groceries, healthcare and accommodation. Forty-three percent of them stated that being able to send money back home was a major factor in their decision to move to Canada.
The study showed that migrants feel the pressure of providing for their families back home. Over half (57 percent) of migrants note that due to the rising cost of living, they have had to work extra hours or extra jobs to continue sending money home.
About the Author
Rachel Ramos-Reid started writing for magazines and newspapers when she was still a junior at the University of the Philippines’ Communication degree program majoring in Journalism. She continued to write in a public relations/corporate communications capacity in various private and government offices until moving out of the country in 1997 to work as Programme Officer for the arts and culture branch of the Southeast Asian Ministers of Education Organization (SEAMEO-SPAFA) in Bangkok, Thailand. At the end of her term, Rachel found herself immigrating to Canada in the year 2000 and again searching for new beginnings.
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