Cash remittances up 1.7% in June, slowest in over 4 years

SINGAPORE, 18 AUGUST 2026 —

MANILA — Cash remittances from Filipinos working abroad rose 1.7% year-on-year to $3.039 billion in June, the slowest growth in more than four years, central bank data showed on Monday.

The increase, though modest, marked the highest monthly inflow since December 2025, when remittances reached $3.522 billion. Month-on-month, inflows surged 12.02% from $2.713 billion in May.

The June growth rate was the weakest since February 2022, when remittances expanded by 1.3%, according to Bangko Sentral ng Pilipinas (BSP) figures.

Personal remittances, which include cash sent through formal and informal channels as well as in-kind transfers, rose 1.8% to $3.388 billion from $3.329 billion a year earlier.

Land-based workers accounted for the bulk of remittances, sending $2.48 billion, up 1.8% from $2.43 billion in June 2025. Sea-based workers contributed $560 million, a 1.4% increase from $550 million.

Analysts attributed the slower growth to a combination of base effects, softer economic conditions in some host countries, geopolitical tensions in parts of the Middle East, and timing-related factors.

“The slowdown in remittance growth to 1.7% in June is more a story of moderation than a cause for concern,” said Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co.

“A combination of base effects, softer economic conditions in some host countries, geopolitical uncertainties in parts of the Middle East, and timing-related factors likely weighed on growth during the month,” he added.

Robert Dan J. Roces, vice-president and group economist at SM Investments Corp., noted that remittances continued to support household spending despite slower growth.

“From a business perspective, the steady rise in remittances is supportive because these flows go directly into household spending,” he said.

“Even at a modest 1.7% growth, remittances provide a reliable income buffer for OFW families and help sustain consumption across food, retail, housing and other services. This provides some underlying support for consumption and suggests household demand can hold up even in a more challenging inflation environment,” he added.

Inflation in the Philippines remained above the BSP’s 3% target for a fourth consecutive month in June, at 6.4%, bringing first-half headline inflation to 4.8%.

In the first half of 2026, cash remittances grew 2.4% year-on-year to $17.149 billion from $16.753 billion in the same period last year.

The United States remained the top source of remittances, accounting for 39.4% of total inflows, followed by Singapore (7.2%), Saudi Arabia (6.3%), Japan (5.1%), the United Kingdom (4.8%), the United Arab Emirates (4.4%), Canada (3.3%), Qatar (3%), Taiwan (2.8%), and South Korea (2.8%).

Land-based workers sent $13.7 billion during the six-month period, up 2.4% from $13.38 billion a year earlier, while sea-based workers’ remittances rose 2.2% to $3.45 billion from $3.38 billion.

Personal remittances for the period increased 2.4% to $19.123 billion from $18.672 billion.

“The inflows continued to support recipient households’ income, spending, and overall domestic demand,” the BSP said.

Ravelas expects remittance inflows to remain resilient, driven by stable global labor market conditions.

“That said, remittances continue to expand and remain one of the most resilient sources of support for the Philippine economy,” he said.

“While growth has slowed, the underlying trend remains positive. As long as global labor markets remain relatively stable, remittances should continue to support household spending, which remains a key driver of economic growth,” he added.

The BSP projects cash remittances to rise 2.7% to $36.6 billion this year, slower than the 3.3% growth to $35.6 billion recorded in 2025.

Related: SM Investments · Bangko Sentral · Singapore