BSP: OFW remittances reach $20.39 billion in first seven months

Remittances from overseas Filipino workers (OFWs) reached $20.39 billion in the first seven months of 2026, up 2.3 percent from $19.93 billion in the same period last year, providing continued support to household spending and domestic economic activity, according to the Bangko Sentral ng Pilipinas (BSP).

The central bank reported Tuesday morning that cash remittances coursed through banks totaled $19.54 billion from January to July, also 2.3 percent higher than the $19.09 billion recorded a year earlier.

For July alone, cash remittances rose 1.9 percent year-on-year to $3.24 billion from $3.18 billion in the same month last year. Personal remittances, which include cash sent through banks and informal channels as well as remittances in kind, increased 2 percent to $3.60 billion from $3.53 billion.

However, RCBC Chief Economist Michael Ricafort noted that while July’s remittance growth was “still among the slowest in more than 4 years or since May 2022,” the monthly level remained among the highest on record.

“[The July figure is still the] 4th highest on record amid some seasonal increase in OFW remittances and conversion to pesos for tuition and other school opening-related expenditures in July 2026 in view of the start of the new school year,” he said, pointing to tuition and back-to-school-related expenses.

The BSP likewise said the July figures showed continued growth after adjusting for seasonal patterns. Seasonally adjusted personal remittances increased during the month, indicating stronger underlying remittance activity after accounting for recurring seasonal movements.

Ricafort said the broader global economic downturn due to the ongoing conflict in the Middle East may have had mixed effects on remittances, with accelerated inflation and a stronger dollar providing a higher incentive for OFWs to send money home.

“[O]FWs and their families [would] also benefit from [the] near-record-high U.S. dollar/peso exchange rate, now at 62.80 levels, up by more than 9% since the war on Iran/Middle East started on February 28, 2026, or more than six months ago, and also higher by 23% since the Russia-Ukraine war started in February 2022, or more than 4.5 years ago, resulting in more peso proceeds from OFW remittances but offset by the resulting higher local prices/inflation, but still better off than those that just earn in pesos,” he said.

The United States remained the largest source of cash remittances during the January-to-July period, accounting for 39.7 percent of total inflows. Singapore followed with 7.1 percent, Saudi Arabia with 6.3 percent, Japan with 5 percent and the United Kingdom with 4.7 percent. Remittances from other countries made up 37.1 percent.

The BSP said the continued increase in cash and personal remittances underscored the resilience of remittance flows as an important source of household income and external financing.

“[T]he 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 about 70% of the Philippine economy, thereby [supporting] faster economic/GDP growth for the coming months/quarters,” added Ricafort.