Cash remittances from overseas Filipino workers (OFWs) reached $2.87 billion in March, rebounding by $85 million from February’s nine-month low and bringing total inflows for the first quarter to $8.68 billion.

Data released by the Bangko Sentral ng Pilipinas (BSP) showed cash remittances grew 2.8 percent year-on-year in the January-to-March period, slightly slower than the 3.1-percent growth recorded during the same period last year. Personal remittances, which include transfers through both formal and informal channels, also rose 2.8 percent to $9.66 billion.

The United States continued to account for the largest share of cash remittances during the first quarter at 39.9 percent, followed by Singapore at 7.4 percent and Saudi Arabia at 6.3 percent.

While remittance inflows remained resilient, the latest figures suggest overseas transfers are no longer accelerating at the pace seen in previous years despite the peso plunging to record lows against the US dollar during the quarter.

Normally, a weaker peso — which hit a fresh record low of P61.72 per US dollar on Friday — encourages overseas Filipinos to remit more money to maximize the purchasing power of their families back home. However, the relatively muted growth may indicate mounting financial strain on Filipino workers abroad amid rising living costs and global economic uncertainty.

According to RCBC Chief Economist Michael Ricafort, OFWs may also be adjusting to the higher prices and broader uncertainty brought about by the Middle East conflict.

“OFW remittances remained resilient, similar to the pandemic period, as OFWs may need to send more to their families to better cope with higher prices, inflation, slower demand, and weaker economic and business conditions,” he said.

Ricafort added that the March figure was “partly weighed by some OFWs adversely affected by the disruptions in the Middle East in terms of some reduction in OFW deployment.”

Prior to the conflict’s escalation at the beginning of March, the Middle East hosted about 40 percent of all OFWs. The Department of Migrant Workers earlier reported that around 5,000 OFWs had been repatriated as of April.

Analysts said remittances continue to provide a critical buffer for the Philippine economy, accounting for roughly 9 percent of gross domestic product. However, mass repatriations, widening external deficits, elevated oil prices, and continued peso volatility are beginning to raise concerns over the sustainability of household consumption, which remains heavily dependent on overseas inflows.