REMITTANCE growth slowed in June, but the amount of money sent home by overseas Filipinos (OFs) was still the highest so far for the year, Bangko Sentral ng Pilipinas (BSP) data showed on Monday.
Personal remittances totaled $3.39 billion during the month, up 1.8 percent from a year earlier. Growth, however, fell from May’s 2.1 percent and the 3.7 percent seen in June last year.
Cash remittances, in particular, grew 1.7 percent to $3.04 billion on an annual basis. Again, growth slowed from 2.1 percent and 3.7 percent a month and a year earlier, respectively.
Year to date, personal remittances were up 2.4 percent to $19.12 billion and cash remittances also rose by 2.4 percent to $17.15 billion. Growth moderated from 2.6 percent and 2.5 percent in May, respectively, and 3.1 percent in June 2025.
Union Bank of the Philippines chief economist Ruben Carlo Asuncion said the slowdown in remittance growth was likely due to uncertainties arising from the Middle East war, which has weighed on deployment and raised concerns over employment prospects in the region.
“Higher living costs in host economies may have also constrained the amount available for transfer, while base effects from relatively stronger inflows a year ago likely contributed to the softer year-on-year growth rate,” he added.
“That said, remittances continued to expand and remained at a relatively high level in absolute terms, suggesting that overseas Filipino workers remain employed and continue to provide an important source of support for household consumption and overall economic activity,” he added.
SMIC Group economist Robert Dan Roces, meanwhile, said that “while the growth is modest, these inflows provide OFW (overseas Filipino worker) families with additional income for food, retail, housing and other essential spending.”
“This should help sustain domestic demand, although inflation will continue to weigh on purchasing power,” he added.
The central bank expects remittances to grow to $36.6 billion this year.
The United States continued to account for the biggest share with 39.4 percent of the total, followed by Singapore at 7.2 percent; Saudi Arabia, 6.3 percent; Japan, 5.1 percent; and the United Kingdom, 4.8 percent.
Rounding out the top 10 were the United Arab Emirates (4.4 percent), Canada (3.3 percent), Qatar (3.0 percent), Taiwan (2.8 percent) and Korea (2.8 percent).
The BSP noted there were limitations on data by source, as remittance centers abroad normally send the money through correspondent banks that are mostly located in the US.
Also, remittances sent through couriers are recorded under the country where their main offices are located, which again in many cases is the US.
“The US appears to be the main source of OF remittances by origin, because the remitting or correspondent banks are mostly located in the US,” the central bank said.
“The data does not imply that the funds were generated within the US.”
