Cash remittances hit 9-month low in February

By Justine Irish D. Tabile, Senior Reporter

MONEY SENT HOME by overseas Filipino workers (OFWs) fell to its lowest level in nine months in February, the Bangko Sentral ng Pilipinas (BSP) reported.

Preliminary data from the BSP showed cash remittances coursed through banks rose by 2.6% to $2.79 billion from $2.72 billion logged in February 2025 but fell 7.7% from $3.02 billion in January.

However, this was the weakest level of remittances since the $2.66 billion in cash remittances in May 2025.

The annual remittance growth in February eased from 3.5% growth in January, and was the slowest since 2.5% in June 2024.

Cash remittances from land-based workers went up by 2.7% to $2.25 billion in February, while money sent home by sea-based workers increased by 2% to $530 million.

Union Bank of the Philippines (UnionBank) Chief Economist Ruben Carlo O. Asuncion said that the continued annual growth indicates “fundamentally stable” remittances.

“The (month-on-month) dip in February remittances largely reflects seasonal normalization rather than a weakening in overseas Filipino labor conditions,” he said in a Viber message, citing strong December and January inflows due to bonuses and holiday‑related transfers.

“This was also compounded by higher living costs abroad, which may have temporarily constrained the ability of some overseas Filipinos to send larger amounts,” he added.

Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said that the February remittance data reflect a “temporary dip, not a red flag.”

“February is usually a softer month due to seasonality, and higher living costs abroad mean OFWs are being more careful — even as remittances still grow year on year,” he said in a Viber message.

For the first two months of the year, cash remittances jumped by 3.1% to $5.81 billion from $5.63 billion a year ago.

Money sent by land-based workers rose by 3.1% to $4.67 billion, while money sent by sea-based workers went up by 2.8% to $1.14 billion.

“The United States remained the top source of cash remittances to the Philippines in January-February 2026, followed by Singapore and Saudi Arabia,” the BSP said.

The United States was the main source of cash remittances with a 40% share of the total so far this year. It was followed by Singapore (7.6%), Saudi Arabia (6.1%), Japan (5.3%), the United Kingdom (4.7%), the United Arab Emirates (4.2%), Canada (3.1%), Taiwan (3%), Qatar (2.9%), and Hong Kong (2.7%).

Meanwhile, personal remittances, which include inflows in kind, rose 2.6% to $3.1 billion in February from $3.02 billion a year ago.

In the January-February period, personal remittances grew by 3.1% to $6.46 billion from $6.27 billion a year earlier.

UnionBank’s Mr. Asuncion said that he expects remittance growth “to moderate but remain positive.” 

“Faster inflation and higher fuel prices — particularly those linked to geopolitical tensions in the Middle East — could weigh on disposable income in host countries, capping near‑term growth,” he said. 

Mr. Asuncion said remittances are historically resilient, as these are supported by the steady demand for Filipino workers in the healthcare, maritime, and services sectors.

“Overall, barring a sharp deterioration in global employment conditions, remittances should continue to grow at a low‑to‑mid single‑digit pace, providing a stable buffer for the Philippine external accounts,” he added.

The Asian Development Bank last week flagged remittances as a key vulnerability of the Philippines, noting that over 17% of total remittances come from OFWs in the Middle East.

“Looking ahead, inflation, slower global growth, and higher fuel prices linked to Middle East tensions may cap remittance growth in the near term, keeping it in low single digits,”  Mr. Ravelas said. “But structurally, remittances remain resilient — OFWs tend to step up support during tough times.”

The BSP projects cash remittances to climb by 3% to $36.7 billion by yearend, slower than the 3.3% seen last year.