June remittances rose to 6-mo excessive of $2.99B

INQUIRER FILE PHOTO

MANILA, Philippines — Cash despatched residence by Filipinos overseas climbed to a six-month excessive in June, lifted by a seasonal surge in transfers to cowl tuition, uniforms and different school-related prices, in accordance with central financial institution information.

Money remittances coursed by way of banks rose 3.7 % from a 12 months earlier to $2.99 billion, the Bangko Sentral ng Pilipinas reported on Friday.

That was the most important month-to-month influx since December 2024, when cash transfers hit a report $3.38 billion.

READ: OFW remittances: A low hanging fruit for Philippine property restoration

The most recent determine introduced whole inflows for the primary half of the 12 months to $16.75 billion, up 3.1 % from the identical interval in 2024 and outpacing the central financial institution’s full-year development forecast of two.8 %. The regular inflows are a boon for an economic system the place family consumption accounts for roughly 70 % of output, and the place remittances function an important lifeline for hundreds of thousands of households.

Seasonal patterns clarify a lot of June’s leap, stated John Paolo Rivera, a senior analysis fellow on the Philippine Institute for Improvement Research. Each June, mother and father crowd wire-transfer counters to gather crisp payments earmarked for varsity bills, a ritual as predictable as the beginning of lessons itself.

Sturdy demand for Filipino employees

“It displays continued robust demand for Filipino employees overseas, particularly in well being care, development and companies within the US, Center East and Asia,” Rivera stated. “Seasonality, notably mid-year training and family bills, additionally possible contributed.”

READ: Trump’s proposed remittance tax raises alarms amongst Filipino migrants

However some economists see much less cheerful forces at play. Leonardo Lanzona, an economics professor at Ateneo de Manila College, pointed to the potential of debt-fueled consumption within the Philippines, which could possibly be pushing abroad employees to remit extra.

“The connection between family debt and remittances varieties a suggestions loop: rising debt will increase reliance on remittances, whereas dependence on remittances leaves households extra uncovered to financial shocks,” Lanzona stated.

Trying forward, exterior dangers loom. Cid Terosa, a senior economist on the College of Asia and the Pacific, cited world commerce tensions and geopolitical uncertainty as potential drags on remittance flows.

/rwd