Cash remittances from overseas Filipino workers (OFWs) dipped to a nine-month low in February 2026, as inflows normalized following the seasonal surge during the holiday period, according to data from the Bangko Sentral ng Pilipinas (BSP).

Remittances coursed through banks amounted to about $2.8 billion in February, slightly lower than January levels, although still up 2.6 percent year-on-year, indicating continued but moderating growth.

The February figure marks the lowest level since May 2025, when remittances totaled $2.668 billion. The slowdown also reversed the stronger start to the year, when remittances reached $3.02 billion in January, up 3.5 percent from a year earlier, driven by higher inflows from both land-based and sea-based workers.

Despite the monthly decline, the BSP reported that cumulative remittances for the first two months of 2026 still posted growth, reaching about $5.8 billion, up 3.1 percent year-on-year, underscoring the sector’s resilience.

Remittances remain a key pillar of the Philippine economy, supporting domestic consumption and serving as a major source of foreign exchange. The United States continued to be the largest source of inflows, followed by Singapore, Saudi Arabia, Japan, and the United Kingdom.

The moderation comes amid rising global uncertainties, including geopolitical tensions and higher energy prices, which could affect employment conditions for overseas workers in some regions. Still, analysts note that remittance flows have historically remained stable even during periods of external shocks.

Economists have raised concerns over the Middle East conflict’s potential impact on remittances, with the region home to around 40 percent of all OFWs, according to Emilio S. Neri Jr., lead economist at the Bank of the Philippine Islands (BPI).

However, he noted that cash remittances from OFWs in the region accounted for less than 20 percent of the record $35.6 billion posted last year, suggesting the impact “may be more contained than expected unless the conflict significantly escalates.”