Remittances rise 3.7% in September

MANILA, Philippines, November 18 ------ Cash remittances grew by 3.7 percent in September, its fastest pace in five months, as overseas hiring remained steady, Middle East deployments continued to normalize and households began preparing for school and holiday expenses.

Latest data from the Bangko Sentral ng Pilipinas (BSP) showed that cash remittances rose to $3.12 billion in September from $3.01 billion a year earlier. This brought the nine-month total to $26.03 billion, up by 3.2 percent from $25.23 billion in the same period of 2024.

Economists said the September performance reflected a combination of firm labor demand from overseas Filipino workers (OFWs) and early seasonal spending pressures. SMIC group economist Robert Dan Roces said remittances picked up as hiring abroad held steady and Middle East deployments normalized. “Seasonal needs also played a role, with many households preparing for school and holiday expenses,” Roces said.

Roces added that the peso’s depreciation in September gave a minor lift since a dollar converted to slightly more pesos, but he stressed that this was a small nudge rather than a major driver of the increase. Oikonomia economist Reinielle Matt Erece highlighted the seasonal component even more strongly. “The onset of ‘ber’ months marks the start of the holiday season for Filipinos, thus we may expect OFWs to send in their earnings to their families here for the celebrations and gatherings,” Erece said.

Erece expects inflows to strengthen further in October and December before stabilizing after the New Year. The United States remained the largest source of inflows, followed by Singapore and Saudi Arabia. The BSP explained that the US consistently appears dominant because many global remittance centers route transactions through American correspondent banks, making them the immediate source on record.

Personal remittances, a broader measure that includes informal transfers and goods sent home, also reached $3.46 billion in September. This was 3.8 percent higher from $3.34 billion a year ago. Cumulative personal remittances also climbed by 3.2 percent to almost $29 billion. “For the rest of the year, remittance growth will likely stay in the three to four percent range,” Roces said, adding that the peso may stay under pressure because of a firm dollar and persistent political noise. “So any forex-related lift to remittances could be limited and will not offset broader risks to inflation and sentiment.”

The BSP expects cash remittances to grow by three percent to $35.5 billion this year and to $36.6 billion next year.

Source: philstar.com