By Katherine K. Chan, Reporter
THE ONGOING Middle East war could have continued to take a toll on migrant Filipinos, as the cash they sent home in May slumped to its lowest level in a yr, preliminary Bangko Sentral ng Pilipinas (BSP) data showed.
Money remittances from overseas Filipino staff (OFWs) rose by 2% yr on yr to $2.713 billion in May. That is the bottom level of money remittances since May 2025, when remittances stood at $2.658 billion.
The two% annual growth was the identical as in April, which was the slowest in nearly 4 years or because the 1.8% in May 2022.
“Money remittances increased yr on yr in May 2026, reflecting sustained inflows from overseas Filipinos,” the central bank said in an announcement on Wednesday.
Nevertheless, the most recent monthly tally slipped by 0.18% from $2.718 billion in money remittances logged in April.
Analysts said this signals a possible slowdown in remittance growth, as headwinds from the continued conflict within the Middle East imperil OFWs’ employment.
“The May remittance data suggest that growth stays positive but could also be losing some momentum,” Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion said in a Viber message.
Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., attributed the softer remittance growth in May to elevated living costs in host countries, slower global economic activity, and OFWs adjusting their remittances to a weaker peso.
“With the peso relatively weaker against the dollar compared with a yr ago, many OFWs can send fewer dollars while still delivering the identical, and even higher, peso value to their families,” he also said via Viber. “In brief, the purchasing power of each dollar remitted has improved, reducing the necessity to send larger dollar amounts.”
In May, the peso averaged P61.441 against the greenback, because it plunged back-to-back to a brand new historic low of P61.75 on May 18 and 19.
BSP data showed Filipinos based within the US remained the highest source of money remittances throughout the month, with Singapore and Saudi Arabia trailing behind.
Land-based staff sent the majority of money remittances in May, which edged up by 2.1% annually to $2.17 billion, while sea-based staff sent home 1.7% greater than last yr with $540 million.
Meanwhile, personal remittances, which include each money coursed through banks and informal channels in addition to in-kind remittances, climbed by 2.1% to $3.033 billion in May from $2.971 billion a yr ago.
On a seasonally adjusted basis, personal remittances inched up by 0.1% month on month to $3.34 billion.
FIVE-MONTH REMITTANCES
Within the five months to May, migrant Filipinos sent home a complete of $14.11 billion, up 2.5% from $13.766 billion a yr ago.
This was the best five-month remittances tally ever, but the expansion reflects the weakest pace because the COVID-19 pandemic, when remittances as of May contracted by 6.4%.
“This highlights the sustained role of (overseas Filipinos) in supporting household income, spending, and overall domestic demand,” the central bank said.
Mr. Ravelas also noted that the all-time-high five-month remittances level points to OFWs’ resilience and continued willingness to support their families within the Philippines.
“That implies Filipino staff abroad proceed to support their families despite global uncertainties, elevated inflation, and geopolitical tensions within the Middle East,” he said.
Inflation has been above the central bank’s 3% goal since March, or the primary full month of the US-Israel war on Iran. In the primary half, inflation averaged 4.8%.
Based on BSP data, remittance flows from the Middle East, which accounts for about 20% of total inflows from all host countries, amounted to $447.73 million in May, falling by 8.9% from $491.569 million in April.
Still, money remittances from Middle East-based OFWs jumped by 3.6% yr on yr to $2.494 billion as of May from $2.407 billion.
As of end-May, over 10,000 OFWs have been repatriated because the Middle East war erupted on Feb. 28.
Inflows from the USA accounted for 39.4% of the overall money remittances as of May.
This was followed by Singapore (7.4%), Saudi Arabia (6.4%), Japan (5.1%), the UK (4.6%), the 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 land-based staff reached $11.22 billion, increasing by 2.5% from $10.94 billion a yr earlier.
Then again, remittances from sea-based OFWs grew by 2.3% to $2.89 billion throughout the five-month period from $2.82 billion within the prior yr.
Meanwhile, personal remittances were up by 2.6% yr on yr to $15.735 billion from $15.343 billion previously.
In accordance with Mr. Asuncion, the most recent remittances data might still not reflect the complete impact of the USA and Israel’s war against Iran, with the recent re-escalation posing renewed risks.
“More importantly, the renewed risk of a US-Iran escalation raises the chance that the impact on OFW employment and deployment within the Middle East could turn into more visible within the months ahead,” he said.
“While remittances remain resilient for now, we imagine downside risks have increased and will not yet be fully reflected in the most recent data,” he added.
Mr. Ravelas said he sees remittance growth softening amid heightened global volatility, although he noted that remittances will likely remain a major economic growth driver.
“Unless we see a significant disruption in overseas labor markets, remittance inflows should proceed to support consumer spending, help stabilize the peso, and supply a vital buffer against external economic shocks,” he said.
“The message from the most recent data is evident: remittances are not any longer growing as rapidly as before, but they continue to be remarkably resilient and dependable.”
The BSP expects money remittances to climb 2.7% to $36.6 billion this yr, slower than the three.3% to $35.6 billion in 2025.