Remittance growth hits slowest pace in 4 years

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June 16, 2026 | 12:00am

Up 2% in April

MANILA, Philippines — Cash remittances from overseas Filipinos continued to rise in April, although growth slowed to its weakest pace in nearly four years amid tighter budgets and lingering global uncertainty.

Data from the Bangko Sentral ng Pilipinas (BSP) showed cash remittances coursed through banks grew by two percent to $2.72 billion in April from $2.66 billion in the same month last year.

While still positive, growth marked the slowest pace since the 1.8-percent expansion recorded in May 2022. The April level was also the lowest in 11 months, as inflows declined from $2.87 billion in March.

“Cash remittances continued to grow in April, reflecting the resilience of remittances from Overseas Filipinos amid prevailing global economic conditions,” the BSP said.

Remittances from land-based workers inched up by 2.1 percent to $2.12 billion in April, while those from sea-based workers rose by 1.9 percent to $590 million.

For the first four months, cash remittances went up by 2.6 percent to $11.4 billion from $11.11 billion a year earlier.

Personal remittances, which include cash sent through banks and informal channels as well as remittances in kind, rose by 2.1 percent to $3.04 billion in April from $2.98 billion a year ago.

From January to April, personal remittances grew by 2.7 percent to $12.7 billion from $12.37 billion in the comparable period last year.

UnionBank chief economist Ruben Carlo Asuncion said the month-on-month decline in remittances in April likely reflected a return to normal levels after stronger inflows earlier in the year, while the slower annual growth pointed to emerging pressures on overseas workers’ incomes and deployment prospects.

“Cash remittance growth remained positive but softened notably, pointing to more cautious household flows amid global uncertainty and tighter budgets among overseas workers,” Asuncion said.

According to Asuncion, the recent signing of a peace deal in the Middle East could help stabilize employment prospects and support remittance flows from the region, reducing downside risks in the near term.

“Overall, remittances should remain resilient, but growth is likely to stay modest as elevated inflation continues to constrain both senders and recipients,” he said.

By source, the United States remained the biggest source of cash remittances in the January to April period with a 39.7-percent share, followed by Singapore at 7.3 percent, Saudi Arabia at 6.4 percent, Japan at 5.1 percent and the United Arab Emirates at 4.8 percent.

Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said the April remittance figures suggest temporary weakness rather than a deeper downtrend.

“We’re seeing a mix of seasonality after a strong first quarter, normalization from elevated post-pandemic flows and some softness in key host economies. The Middle East tensions may have had a marginal effect, but given the diversified deployment of Filipino workers, it’s not the main driver,” Ravelas said.

Ravelas said the recent slowdown could linger in the near term, although underlying drivers remain supportive.

“The fundamentals remain intact. Steady global demand for Filipino labor, ongoing deployment and a gradual shift to higher-skilled, better-paid jobs,” he said. “We typically see stronger inflows in the second half due to seasonal factors.”

The BSP expects cash remittances to grow by three percent this year and in 2027.