By Katherine K. Chan, A reporter
The Continuing Middle East The war may have continued to hurt Filipino migrants, as remittances sent home in May fell to the lowest level for the year, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.
Remittances from overseas Filipino workers (OFWs) increased 2% year-on-year to $2.713 billion in May. This is the lowest level of remittances since May 2025, when remittances stood at $2.658 billion.
Annual growth of 2% was the same as in April, which was the slowest in nearly four years or since 1.8% in May 2022.
“Remittances increased year-on-year in May 2026, reflecting continued inflows from overseas,” the central bank said in a statement on Wednesday.
However, the latest monthly figures were down 0.18% from $2.718 billion in remittances in April.
Analysts said this points to a possible slowdown in the growth of remittances, as headwinds from ongoing conflicts in the Middle East disrupt the employment of OFWs.
“The May remittance data suggests that growth remains positive but may lose momentum,” said Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion in a Viber message.
Jonathan L. Ravelas, senior consultant at Reyes Tacandong & Co., says the slight growth in remittances in May is due to higher living costs in host countries, slower global economic activity, and OFWs adjusting remittances to the weaker peso.
“Since the peso is weaker against the dollar compared to last year, many OFWs can send a few dollars while sending the same, or more, peso amount to their families,” he said via Viber. “In short, the purchasing power of each dollar spent has increased, reducing the need to export large amounts.”
In May, the peso averaged P61.441 against the greenback, as it retreated back to the historic low of P61.75 on May 18 and 19.
BSP data showed US-based Filipinos remained the top source of remittances during the month, with Singapore and Saudi Arabia trailing behind.
Land workers sent total remittances in May, up 2.1% year-over-year to $2.17 billion, while seafarers sent home 1.7% more than a year ago at $540 million.
Meanwhile, personal remittances, which include both remittances through banks and informal channels and remittances, rose 2.1% to $3.033 billion in May from $2.971 billion last year.
Seasonally adjusted, remittances rose 0.1% in the month to $3.34 billion.
FIVE MONTH AMOUNTS
In the five months to May, Filipino migrants sent home a total of $14.11 billion, up 2.5% from $13.766 billion last year.
This was a five-month high for remittances, but growth represents the weakest pace since the COVID-19 pandemic, when remittances since May fell by 6.4%.
“This highlights the continued role (of overseas Filipinos) in supporting domestic income, spending and overall domestic demand,” the central bank said.
Mr. Ravelas also noted that the five-month high level of remittances indicates the resilience of OFWs. again continuing to love foodthe port their families in the Philippines.
“That suggests that Filipino workers abroad continue to support their families despite global uncertainty, inflation, and political tensions in the Middle East,” he said.
Inflation has been above the bank’s 3% target since March, or the first full month of the US-Israel war against Iran. In the first half, inflation reached 4.8%.
Based on BSP data, remittances from the Middle East, which account for about 20% of total income from all participating countries, reached $447.73 million in May, down 8.9% from $491.569 million in April.
However, remittances from OFWs in the Middle East decreased by 3.6% year-on-year to $2.494 billion as of May from $2.407 billion.
As of the end of May, more than 10,000 OFWs have been repatriated since the outbreak of war in the Middle East on Feb. 28.
Remittances from the United States accounted for 39.4% of total remittances since May.
This was followed by Singapore (7.4%), Saudi Arabia (6.4%), Japan (5.1%), United Kingdom (4.6%), United Arab Emirates (4.3%), Canada (3.3%), Qatar (2.9%), Taiwan (2.8%), and South Korea (2.7%).
As of May, money sent home by international workers reached $11.22 billion, up 2.5% from $10.94 billion a year ago.
On the other hand, remittances from sea-based OFWs grew by 2.3% to $2.89 billion during the five-month period from $2.82 billion last year.
Meanwhile, remittances rose 2.6% year-on-year to $15.735 billion from $15.343 billion previously.
According to Mr. Asuncion, the latest data on remittances may not reflect the full impact of the United States and Israel’s war against Iran, and the recent rebound creates renewed risks.
“More importantly, the renewed risk of US-Iran escalation suggests the possibility that the impact of OFW recruitment and deployment in the Middle East may be more visible in the coming months,” he said.
“While remittances are still strong for now, we believe downside risks have grown and may not be fully reflected in recent data,” he added.
Mr. Ravelas said he sees the growth of remittances slowing amid the global economic slowdown, although he noted that remittances will remain a major driver of economic growth.
“Unless we see a major disruption in foreign labor markets, income should continue to support consumer spending, help stabilize the peso, and provide an important buffer against exter.economic shock,” he said.
“The message from the latest data is clear: remittances are not growing as fast as before, but they remain strong and reliable.”
The BSP expects remittances to rise 2.7% to $36.6 billion this year, slower than 3.3% to $35.6 billion in 2025.
