Cash remittances rose 2.9 percent year-on-year to US$2.66 billion in May, driven by continued inflows from overseas Filipinos (OFs), according to the Bangko Sentral ng Pilipinas (BSP). The increase highlights the resilience of foreign labor earnings amid global economic uncertainty and underscores the sector’s significance in shaping domestic consumption and foreign exchange stability.
Sea-based OFs led the growth with a 3.1 percent increase, totaling US$536 million, outpacing the 2.8 percent rise in remittances from land-based workers, which reached US$2.12 billion. Cumulatively, cash remittances from January to May climbed 3 percent to US$13.77 billion, up from US$13.37 billion a year earlier.
Personal remittances, which include both cash and non-cash transfers, grew 3 percent year-on-year to US$2.97 billion in May, while the January-May tally also expanded 3 percent to US$15.34 billion. The BSP noted a seasonally adjusted month-on-month decline of 0.6 percent, indicating possible short-term volatility despite the broader uptrend.
The United States remained the dominant source of remittances, followed by Singapore and Saudi Arabia, though the BSP acknowledged data limitations due to routing practices through U.S.-based correspondent banks.
The steady rise in remittances supports domestic consumption and helps narrow the current account deficit, reinforcing the BSP’s monetary policy stance and cushioning the peso against external shocks. Policymakers are likely to continue viewing OFW remittances as a key buffer for economic resilience amid global headwinds.
