By Katherine K. Chan, Reporter
CASH REMITTANCES recorded its slowest annual growth in nearly four years in April as weak global economic conditions weighed on overseas Filipino workers’ (OFWs) ability to send money home.
Data from the Bangko Sentral ng Pilipinas (BSP) showed money sent through banks by migrant Filipinos climbed by 2% to $2.718 billion in April from $2.664 billion in the same month last year.
This was the slowest annual growth in remittances since May 2022, when it rose by 1.8% to $2.425 billion.
Month on month, cash remittances fell by 5.4% from the $2.874 billion in March.
April’s tally likewise marked the lowest monthly amount in about a year or since the $2.658 billion logged in May 2025.
In a statement on Monday, the central bank said cash remittances remained resilient, albeit rising at a slower pace, amid ongoing geopolitical issues.
“Cash remittances continued to grow in April 2026, reflecting the resilience of remittances from overseas Filipinos (OF) amid prevailing global economic conditions,” the BSP said.
Land-based workers sent $2.12 billion in April, up 2.1%, while remittances from sea-based workers grew by 1.9% to $590 million.
Meanwhile, personal remittances, which include both cash coursed through banks and informal channels as well as in-kind remittances, amounted to $3.037 billion in April.
This was 2.1% higher than the $2.975 billion recorded a year earlier, but down 5.2% from $3.203 billion in March.
“Seasonally adjusted personal remittances, which include cash sent through banks and informal channels as well as remittances in kind, likewise increased,” the central bank said. “This highlights the sustained role of OFs in supporting household finances and consumption.”
The softer growth in cash remittances in April came as the prevailing global uncertainty at the time had tested households and OFWs’ budgets, Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion said.
“Cash remittance growth remained positive but softened notably, pointing to more cautious household flows amid global uncertainty and tighter budgets among overseas workers,” he said in a Viber message.
“The sequential drop in April suggests some normalization after earlier front-loading, but the slower year-on-year pace highlights emerging headwinds to income and deployment conditions,” he added.
Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., attributed the weaker inflows to temporary headwinds, with the Middle East conflict posing only a “marginal effect” on overall remittances.
“April’s remittance data point to temporary headwinds, not a structural slowdown. You’re seeing a mix of seasonality after a strong first quarter, normalization from elevated post-pandemic flows, and some softness in key host economies,” he also said via Viber.
“The Middle East tensions may have had a marginal effect, but given the diversified deployment of Filipino workers, it’s not the main driver,” he added.
However, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the sustained rise in remittances was likely driven by OFWs seeking to support their families’ higher expenses back home.
“OFW remittances remained relatively resilient even at low single-digit growth levels (at least not year-on-year decline), similar to the COVID-19 pandemic time, as OFWs may need to send more to their families to better cope with higher prices, slower demand and slower economic or business conditions,” he said in a Viber message.
Inflation averaged 4.5% as of May, after the headline print breached the BSP’s 2%-4% target for three consecutive months as the Middle East war continued to weigh on consumer prices.
FOUR-MONTH TALLY UP
On the other hand, cash remittances reached $11.398 billion in the four months to April, rising by 2.6% from the $11.107 billion seen in the same year-ago period.
In the January-to-April period, land-based OFs accounted for the bulk or $9.05 billion of cash remittances. This was up by 2.6% from $8.82 billion in the prior year.
Meanwhile, sea-based migrant workers have so far remitted $2.34 billion, increasing by 2.5% from the $2.29 billion last year.
Most of the money sent home as of April came from Filipinos in the United States, followed by those in Singapore and Saudi Arabia, which the central bank said reflected “stable geographic concentration.”
Broken down, cash remittances from the US accounted for 39.7% of the total, followed by Singapore (7.3%), Saudi Arabia (6.4%), Japan (5.1%), the United Arab Emirates (4.6%), the United Kingdom (4.4%), Canada (3.1%), Qatar (2.9%), Taiwan (2.8%), and Hong Kong (2.7%).
Meanwhile, personal remittances went up by 2.7% to $12.701 billion from $12.372 billion in the same period in 2025.
After four straight months of easing, remittances may soon recover as the US and Iran’s recent peace agreement could translate to more stable labor conditions in the region, according to Mr. Asuncion.
“At the same time, the recent signing of a peace deal in the Middle East could help stabilize employment prospects and support remittance flows from the region, reducing downside risks in the near term,” he said.
Over 2.4 million OFWs are based in the Middle East, with remittances from the region making up about 20% of the total inflows to the country.
Analysts earlier told BusinessWorld that remittances from the war-hit region will likely remain resilient as OFWs strive to send additional funds to their families affected by soaring prices amid the energy crisis.
This may also be the case for other migrant Filipinos across the world, although Mr. Asuncion noted that remittance growth may remain subdued amid still elevated inflation.
“Overall, remittances should remain resilient, but growth is likely to stay modest as elevated inflation continues to constrain both senders and recipients,” he said.
Analysts and the central bank noted that inflation may stay above target throughout the year as high energy costs continue to feed into other commodities.
Meanwhile, seasonal demand may also drive remittances higher in the second half of the year, according to Mr. Ravelas.
“The recent slowdown in growth could linger in the near term, but the fundamentals remain intact — steady global demand for Filipino labor, ongoing deployment, and a gradual shift to higher-skilled, better-paid jobs,” he added.
The BSP projects cash remittances to grow by 3% to $36.7 billion this year, slower than the 3.3% to $35.6 billion in 2025.
