Money sent home by overseas Filipinos climbed to a new record in 2025, as stronger inflows during the holiday season helped push annual remittances beyond the central bank’s earlier projection.
The Bangko Sentral ng Pilipinas (BSP) reported that cash remittances in December 2025 reached an all-time monthly high of $3.52 billion, up 4.2 percent from $3.38 billion recorded in the same month a year earlier.
With the December surge, total cash remittances for the full year rose to a record $35.63 billion, increasing by 3.3 percent from $34.49 billion in 2024. The BSP noted that the full-year outcome exceeded its previous forecast, after projecting in the fourth quarter of 2025 that remittances would expand by three percent for the year. The central bank also maintained a 2026 forecast of $36.6 billion.
Data showed the United States remained the top source of cash remittances in 2025, contributing 39.7 percent of the total. Singapore followed with 7.3 percent, while Saudi Arabia accounted for 6.6 percent. Japan contributed 5.0 percent, and the United Kingdom made up 4.6 percent.
Reyes Tacandong & Co. senior adviser Jonathan L. Ravelas attributed the year-end jump largely to holiday-related income and spending patterns among overseas workers. He said the record performance reflected continued stability in overseas Filipino employment despite uncertainty in global conditions.
Ravelas estimated that remittances likely lifted economic output by around 50 basis points, with 2025 cash remittances equivalent to 7.3 percent of gross domestic product (GDP) and 6.4 percent of gross national income (GNI). He said these inflows helped support household consumption, housing activity, and services even as overall economic growth slowed to 4.4 percent.
However, he pointed to potential risks that could weaken momentum, particularly the one-percent tax on remittances from the United States. “It won’t derail flows overnight, but higher costs could slow formal transfers and weigh on momentum over time,” he said.
China Banking Corp. group chief economist Domini S. Velasquez also linked the December spike to seasonal trends, improved global conditions, and “possible front-loading ahead of the implementation of the ‘One Big Beautiful Act’ in January.” She added that the peso’s weakness in December may have encouraged overseas Filipinos to send more funds. “as overseas Filipinos took advantage of more favorable exchange rates to remit.”
Velasquez noted that remittance patterns have also been shifting, with inflows from Europe and Oceania accelerating since April last year. “However, we are seeing changes in the composition of inflows. Notably, remittances from Europe and Oceania have been rising more than usual since April last year, indicating stronger labor markets and income gains for overseas Filipinos in these regions,” she said.
Philippine Institute for Development Studies (PIDS) senior research fellow John Paolo Rivera said the record December figure was consistent with seasonal increases but also reflected continued demand for overseas Filipino workers in key industries. He said the inflows pointed to stable employment abroad, particularly in healthcare, maritime, and service-related work.
Rivera added that the strong expansion in remittances helps cushion the economy by sustaining household spending amid weaker investment and tighter domestic consumption. He warned, however, that any future US remittance tax could reduce the amount sent home over time by increasing transfer costs, though he said any effect would likely be gradual due to the reliance of many Filipino households on remittance income.
The BSP also explained that remittance sourcing data can be influenced by how transfers are processed internationally. It said many money transfer centers abroad send funds through correspondent banks, most of which are based in the United States, and remittances coursed through money couriers are recorded under the location of their head offices rather than the actual sending country. “Therefore, the US would appear to be the main source of OF remittances because banks attribute the origin of funds to the most immediate source,” the BSP said.
The BSP said the rise in cash remittances also contributed to the increase in personal remittances, which include cash transfers through banks and informal channels, as well as remittances in kind. Personal remittances rose to a record $3.89 billion in December 2025, up 4.2 percent from $3.73 billion in December 2024, while full-year personal remittances climbed 3.3 percent to an all-time high of $39.62 billion from $38.34 billion in 2024.
