Cash remittances from overseas Filipino workers (OFWs) rose by 1.9 percent year on year to $3.03 billion in August, bringing inflows in the first eight months of 2026 to $23.42 billion, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.
The August figure was higher than the $2.98 billion recorded in the same month last year. Cumulative cash remittances from January to August increased by 2.3 percent from $22.91 billion in the same period in 2025.
However, RCBC chief economist Michael Ricafort noted that the August growth rate of 1.9 percent, unchanged from July, remains “still among the slowest in more than 4 years or since May 2022.”
He added that the conversion of pesos remitted by OFWs “for tuition and other school opening-related expenditures in August 2026 in view of the start of the new school year” contributed to the August figures. The local currency’s weakness against the US dollar may also have played a role.
Meanwhile, the BSP said personal remittances, which include cash sent through banks and qualifying transfers through other channels, goods sent home, and certain net earnings and capital transfers, grew by 2 percent year on year to $3.37 billion in August from $3.31 billion a year earlier.
For the first eight months, personal remittances reached $26.1 billion, up 2.3 percent from $25.51 billion in the same period last year.
The United States remained the largest reported source of cash remittances from January to August, accounting for 39.8 percent of total inflows. Singapore followed with a 7.1-percent share, while Saudi Arabia accounted for 6.3 percent.
Ricafort noted that the broader global economic downturn resulting from the ongoing war in the Middle East may also have hampered disposable income.
“U.S. and global economic growth could have slowed down due to higher world oil/energy prices, which increased prices and borrowing costs, thereby reducing disposable incomes/purchasing power, leading to reduced spending and cost-cutting measures,” he said.
The BSP said remittance flows continued to support household spending and domestic economic activity, underscoring their role as a key source of household income and external financing.
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