FILIPINOS working abroad have poured larger-than-usual amounts of money into the household coffers of their families back home despite grappling with war-triggered inflation for the third straight month.
Local economists pointed this out after the latest data from the Bangko Sentral ng Pilipinas (BSP) showed cash remittances amounted to $2.713 billion in May 2026, up 2 percent from the $2.66 billion in May 2025.
This brought cash remittances in the January to May 2026 period to $14.11 billion, 2.5 percent higher than the $13.766 billion in the five-month period in 2025.
Historical data showed the 2-percent growth rate year-on-year in May 2026 was the slowest pace of cash remittances in four years.
Moreover, when looking at the month-on-month data, the $2.713-billion cash inflows in May was the lowest amount sent home by OFWs in 12 months.
However, economists pointed out the bigger picture: the $14.11 billion sent home by OFWs to their families back home which is also the highest on record in terms of the five-month period data.
Despite the slow pace in cash remittances, economists concurred that the bigger picture points to the ‘remarkable resilience’ of Filipinos working abroad.
Jonathan L. Ravelas, senior adviser at Reyes Tacandong and Co. said: ‘The latest remittance data tell us that while growth has slowed, the bigger picture remains one of resilience. A 2-percent increase in May may be the slowest in four years, but remittances are still growing and, more importantly, the January-May total reached a record-high $14.1 billion.’
‘That suggests Filipino workers abroad continue to support their families despite global uncertainties, elevated inflation, and geopolitical tensions in the Middle East,’ Ravelas said in a Viber message on Wednesday.
For his part, John Paolo R. Rivera, Senior Research Fellow at Philippine Institute for Development Studies (PIDS) said despite the slower growth pace, cash remittances continue to serve as an ‘important buffer’ for household consumption and the country’s external position.
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corporation (RCBC) explained that remittances remained ‘relatively resilient’ even at low single-digit growth levels but pointed out that at least it did not decline year-on-year.
As he likened the Middle East conflict to the Covid-19 pandemic period, Ricafort pointed out that OFWs may need to send more to their families ‘to better cope with higher prices/inflation and slower demand and slower economic/business conditions.’
‘The continued single-digit year-on-year growth in OFW remittances nevertheless is still a good signal/bright spot for the overall economy as an important growth driver, especially in terms of consumer spending, which accounts for at least 70 percent of the Philippine economy, thereby could support faster economic/GDP growth for the coming months/quarters,’ added the RCBC’s chief economist.
Softer growth pace
Explaining the slower growth pace, meanwhile, Ravelas said this was ‘likely driven by a combination of factors including higher living costs in host countries, slower global economic activity, and currency movements.’
‘With the peso relatively weaker against the dollar compared with a year ago, many OFWs can send fewer dollars while still delivering the same, or even higher, peso value to their families. In short, the purchasing power of every dollar remitted has improved, reducing the need to send larger dollar amounts,’ added Ravelas.
Rivera, for his part, said the ‘higher living costs abroad’ could be the culprit behind the slower pace in cash remittances ‘which can limit the amount they are able to send home.’
Bigger picture: The 5-month data
Still, Ravelas said: ‘What is particularly encouraging is that remittances continue to rise despite the Middle East conflict.’
This, he explained, reflects the ‘diversification’ of Filipino workers across different regions and the ‘strong culture of family support’ among OFWs.
This was echoed by Rivera: ‘Despite the Middle East conflict, employment demand in many host countries has remained relatively stable, while many OFWs tend to increase or sustain remittances during periods of uncertainty to support their families.’
Historically, Ravelas said periods of uncertainty often lead overseas Filipinos to prioritize household financial security back home.
Key pillar of PHL economy
Looking ahead, Rivera and Ravelas believe that remittances will remain resilient and continue to support the Philippine economy.
‘Remittances may remain broadly resilient for the rest of the year, although growth may stay moderate given global uncertainties,’ Rivera said.
Ravelas said: ‘Unless we see a major disruption in overseas labor markets, remittance inflows should continue to support consumer spending, help stabilize the peso, and provide an important bu?er against external economic shocks.’
He said the message from the latest data is clear: ‘Remittances are no longer growing as rapidly as before, but they remain remarkably resilient and dependable.’
Key risks ahead
Despite staying resilient, cash remittances are also facing risks, according to Rivera and Asuncion.
Ruben Carlo O. Asuncion, chief economist at the Union Bank of the Philippines (UBP) pointed out: ‘The May remittance data suggest that growth remains positive but may be losing some momentum.’
Asuncion warned: ‘More importantly, the renewed risk of a US-Iran escalation raises the possibility that the impact on OFW employment and deployment in the Middle East could become more visible in the months ahead,’ Asuncion said.
While remittances remain resilient for now, he said: ‘We believe downside risks have increased and may not yet be fully reflected in the latest data.’
For his part, Rivera said: ‘Key risks include a prolonged geopolitical conflict, slower global growth, and persistent inflation in host economies.’
The central bank said in its statement that the United States remained the top source of inflows, followed by Singapore and Saudi Arabia, based on reported remittance transactions by origin.
‘Cash and personal remittances also grew in the period of January-May 2026. This highlights the sustained role of [Overseas Filipinos] OFs in supporting household income, spending, and overall domestic demand,’ the BSP also noted.