In the wake of renewed political tensions following the International Criminal Court’s (ICC) arrest of former President Rodrigo Duterte on charges of crimes against humanity, overseas Filipino workers (OFWs) are once again at the center of national conversation. A growing number of OFWs have proposed a “zero remittance week” from March 28 to April 4, 2025, as a form of protest against Duterte’s detention. While the act is symbolic, it raises fundamental questions about the country’s deep dependence on its modern-day heroes: the OFWs.
Malacañang has called for sobriety, urging OFWs to consider the broader impact of such a move—especially on their families who rely on their remittances for day-to-day survival. Chief Presidential Legal Counsel Juan Ponce Enrile has gone further, warning that actions like these might prompt a reassessment of tax privileges and overseas benefits granted to Filipino workers abroad.
But why is this protest so significant? Because OFW remittances are not just personal transfers of money; they are one of the key lifelines of the Philippine economy.
The macroeconomic power of remittances
According to the Bangko Sentral ng Pilipinas (BSP), OFWs sent a record-high $38.3 billion in remittances in 2024, equivalent to 8.3% of the country’s GDP. This figure surpasses foreign direct investments (FDIs) and even hot money inflows by wide margins, establishing remittances as a cornerstone of the economy.
Table 1: Annual OFW Personal Remittances (2015-2024)
| Year | Remittance (USD Billion) |
|---|---|
| 2015 | 28.3 |
| 2016 | 29.7 |
| 2017 | 31.3 |
| 2018 | 32.2 |
| 2019 | 33.5 |
| 2020 | 33.1 |
| 2021 | 34.9 |
| 2022 | 36.1 |
| 2023 | 37.2 |
| 2024 | 38.3 |
(Source: Bangko Sentral ng Pilipinas)
These inflows directly support 70% of household spending, according to economists. They cover essentials such as education, healthcare, and housing—and, in doing so, contribute to reducing poverty and improving the quality of life for millions of Filipinos. The World Bank has noted that remittances have helped “raise the incomes of the most vulnerable” and remain a stable source of foreign exchange, shielding the country from volatile global capital flows.
Resilience and seasonality
Even amid global uncertainties—from the COVID-19 pandemic to inflationary pressures and geopolitical tensions—OFW remittances have proven remarkably resilient. In December 2024 alone, remittances reached $3.73 billion, the highest monthly total on record, reflecting the holiday surge and the cultural importance of sending money home during Christmas.
Figure 1: Monthly OFW Remittances (2023 vs 2024)
- January 2024: $3.15B
- June 2024: $3.21B
- November 2024: $3.12B
- December 2024: $3.73B
- January 2025: $3.24B
(Source: BSP Monthly Remittance Reports)
Economists say this kind of financial discipline and consistency among OFWs keeps the Philippine economy buoyant, particularly when domestic production is lagging. With about 10 million Filipinos working overseas, their remittances are not just supplementary—they are foundational.
Protest vs. impact: What a “Zero Remittance Week” could mean
In response to the call for a remittance boycott, the government expressed concern not only for macroeconomic stability but for the well-being of millions of households that depend on OFW income. Economic analysts suggest that the effect of a week-long halt in remittances may be minimal in terms of overall GDP impact, especially if the withheld funds are remitted afterward. However, they caution that it could create short-term cash flow issues for families relying on weekly or bi-weekly transfers.
Historically, OFWs have organized similar protests—most notably the 2013 “Zero Remittance Day” against government corruption and the pork barrel system. While largely symbolic, such movements demonstrate the political power OFWs can wield from across the globe.
Still, experts and policy advisors warn against over-politicizing remittances. As BSP officials note, these funds are “a major driver of domestic consumption” and contribute significantly to national reserves and economic resilience. Any sustained disruption, intentional or otherwise, could ripple across supply chains, local businesses, and the banking system.
