Growth in money sent home by overseas Filipinos slowed to its weakest pace in more than four years in June, as softer economic conditions in host markets and escalating geopolitical tensions in the Middle East dampened worker inflows.

According to the latest data from the Bangko Sentral ng Pilipinas (BSP) released on Aug. 17, cash remittances routed through the banking system increased 1.7 percent year-on-year to $3.04 billion.

The June expansion pace was the slowest annual growth rate since February 2022, when inflows grew 1.3 percent.

Month-on-month, remittances grew modestly from the $3.03 billion reported in May 2026. Land-based workers contributed $2.48 billion—a 1.8 percent year-on-year increase—while sea-based workers sent home $560 million, up 1.4 percent.

Personal remittances—a broader category including informal channels and in-kind transfers—reached $3.39 billion in June, up 1.8 percent from $3.33 billion in June 2025.

As of end-June, cash remittances rose 2.4 percent to $17.15 billion from $16.75 billion in the same period last year. Cumulative personal remittances for the six-month period reached $19.12 billion, also up 2.4 percent from $18.67 billion a year earlier.

The United States (US) remained the top source of cash remittances in the first half, accounting for 39.4 percent of the total. It was followed by Singapore (7.2 percent), Saudi Arabia (6.3 percent), Japan (5.1 percent), the United Kingdom (4.8 percent), the United Arab Emirates (4.4 percent), and Canada (3.3 percent).

The BSP noted that US dominance is partly due to remittance centers routing funds through US-based correspondent banks, leading institutions to attribute the origin to the immediate point of transmittal rather than the worker’s actual location.

Cash remittances, a key economic growth engine, accounted for 7.1 percent of the country’s gross domestic product (GDP) in the second quarter of 2026, down from 7.4 percent in the first quarter.

For full-year 2026, the BSP previously projected cash remittances to reach $36.6 billion, representing a 2.7 percent growth rate over the $35.6 billion recorded in 2025. However, first-half growth averaged 2.4 percent, trailing the 3.1 percent rate recorded in the same period last year.

Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., attributed the slowdown to a mix of “base effects, softer economic conditions in some host countries, geopolitical uncertainties in parts of the Middle East, and timing-related factors” that created economic headwinds during the month.

Despite these factors, Ravelas emphasized that remittances remain among the most resilient contributors to domestic output.

“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,” Ravelas said.

Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, likewise pointed to spillovers from Middle East tensions affecting the deployment of Filipino workers to the Gulf region. “However, it is likely not the sole factor behind the softer June outturn,” he said.

“Persistent cost-of-living pressures in host economies, slower economic activity in some destination markets, and base effects from stronger inflows a year earlier may have also contributed,” Asuncion added.