By Katherine K. Chan, Reporter
MONEY SENT HOME by migrant Filipinos grew by less than 2% for the third straight month in August, as lingering geopolitical tensions continued to weigh on remittance flows and overseas worker deployment, analysts said.
Cash remittances sent by overseas Filipino workers (OFWs) through banks climbed by 1.9% to $3.035 billion in August from the $2.977 billion seen a year ago, preliminary Bangko Sentral ng Pilipinas (BSP) data showed.
This matched the annual growth posted in July, and the lowest since the over four-year low of 1.7% posted in June.
In terms of the amount, August was the lowest monthly level in three months or since $2.713 billion in May.
Month on month, cash remittances declined by 6.3% from $3.24 billion.
Of the total, cash remittances from the land-based OFWs accounted for the bulk, rising by 2.2% to $2.404 billion in August from $2.351 billion in the same month a year ago.
Sea-based workers sent home $631.116 million in August, inching up by 0.8% higher from $626.118 million a year ago.
“The United States remained the top source of inflows, followed by Singapore and Saudi Arabia,” the central bank said in a statement on Thursday.
Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion said the muted remittance growth was largely due to weaker deployment and persistent global uncertainties.
“August remittances suggest that overseas Filipino inflows remain resilient but are growing at a more moderate pace amid softer deployment and global uncertainties,” he said in a Viber message.
“While geopolitical risks continue to pose challenges, remittances have historically been among the country’s most stable external inflows,” he added.
Ser Percival K. Peña-Reyes, a senior research fellow at the Ateneo Center for Economic Research and Development, also noted tighter economic conditions in host countries likely softened remittances.
“The slowdown likely reflected seasonal factors, moderating remittance growth from major host economies, and persistent economic uncertainties abroad,” he said via Facebook Messenger. “Inflation and higher living costs in countries where Filipino workers are employed may have also constrained their capacity to send money home.”
Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said heavy rains and floods, which led to class and work suspensions, likely dampened remittance inflows.
“Weather-related disturbance in view of the typhoons or flooding during the month that reduced business days or working days could have also slowed down OFW remittances,” he said in a Viber message.
However, elevated commodity prices in the Philippines may have prompted OFWs to keep sending money home to support their beneficiaries, Mr. Ricafort noted.
In August, headline inflation eased to a five-month low of 6.1% but remained above the BSP’s 3% target for a sixth consecutive month or since the Middle East war erupted.
“The continued single-digit year-on-year growth in OFW remittances nevertheless is still a good signal or bright spot for the overall economy as an important growth driver, especially in terms of consumer spending, which accounts for about 70% of the Philippine economy,” Mr. Ricafort said.
Meanwhile, personal remittances amounted to $3.372 billion, up by 2% from the $3.307 billion logged a year prior. These include both cash coursed through banks and informal channels as well as in-kind remittances.
“Seasonally adjusted personal remittances, which include cash sent through banks and informal channels as well as remittances in kind, also increased slightly in August 2026, suggesting sustained underlying remittance growth after accounting for seasonal factors,” the BSP said.
EIGHT-MONTH PERIOD
In the eight months to August, cash remittances rose by 2.2% to $23.424 billion from $22.909 billion in the same period last year.
Personal remittances went up by 2.3% as of August to $26.098 billion from $25.513 billion a year earlier.
“Cash and personal remittances also moderately grew in January-August 2026,” the central bank said. “These inflows continued to underpin household spending and domestic economic activity, reflecting the resilience of remittance flows as a key source of household income and external financing.”
OFWs in the United States accounted for 39.8% of total cash remittances in the eight-month period.
This was followed by OFWs in Singapore (7.1%), Saudi Arabia (6.3%), Japan (4.9%), and the United Kingdom (4.8%).
As of August, cash remittances from land-based workers reached $18.75 billion, up 2.3% from $18.32 billion in the comparable year-ago period.
On the other hand, sea-based workers sent home $4.67 billion as of August, 1.9% up from $4.59 billion a year ago.
For Mr. Asuncion, remittances will likely recover in the coming months due to a holiday-driven boost, making the BSP’s full-year projection still attainable.
“With seasonal holiday-related transfers typically picking up in the fourth quarter, the BSP’s 2.7% growth (projection) for 2026 remains within reach, provided current trends hold through yearend,” he said.
Meanwhile, Mr. Peña-Reyes said remittances typically rise in the months ahead of the holiday season.
“Remittances are expected to remain on an upward trajectory in Q4, supported by the traditional increase in money transfers ahead of Christmas, when overseas Filipinos provide additional assistance for family expenses, education, and holiday spending,” he said.
“However, growth may remain moderate amid geopolitical tensions, inflation, and uncertainty in overseas labor markets. The strength of seasonal inflows will depend partly on employment stability in major host countries,” he added.
Mr. Ricafort sees cash remittances rebounding to annual growth rates of 2%-3% for the remainder of the year, with the weak peso boosting gains from dollar-denominated inflows.
On Thursday, the peso breached the P63 handle for the first time, closing at P63.06 against the dollar. This was 19 centavos weaker than its P62.87 finish on Wednesday and broke the previous record low of P62.90 on Oct. 8, according to Bankers Association of the Philippines data.
In its latest balance of payments forecast as of the third quarter, the BSP said inflows from OFW remittances will continue to cushion the country’s external position against ongoing global risks.
The central bank projects cash remittances to grow by 2.7% to $36.6 billion by yearend from $35.6 billion in 2025.