Cash remittances up 2.9% in May

Money sent home by overseas Filipino workers (OFWs) rose by an annual 2.9% in May, although the monthly haul was the lowest in 12 months, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Cash remittances coursed through banks jumped by 2.9% to USD 2.658 billion in May from USD 2.583 billion in the same month a year ago, the central bank said on Tuesday.

It was also the lowest level of monthly remittances in 12 months or since May 2024.

May remittance growth also slowed from the 4% pace in April, when cash remittances reached USD 2.664 billion.

Money sent home by land-based workers went up by 2.8% to USD 2.12 billion in May from USD 2.06 billion in the same month a year ago.

Remittances from sea-based migrant workers jumped by an annual 3.1% to USD 536 million in May.

“The increase in cash remittances drove an increase in personal remittances as well,” the BSP said.

Personal remittances, which include inflows in kind, rose by 3% to USD 2.97 billion in May from USD 2.88 billion in the previous year.

Broken down, remittances from workers with contracts of a year or more increased by 2.8% to USD 2.29 billion, while those with contracts of less than a year jumped by 3.4% to USD 590 million.

Five-month period

In the first five months, cash remittances grew by 3% to USD 13.77 billion from USD 13.37 billion in the comparable year-ago period.

This as remittances sent by land-based workers climbed by 3.3% to USD 10.94 billion in the January-May period, while sea-based workers’ remittances edged higher by 2% to USD 2.82 billion.

The United States was the top source of remittances in the five-month period, accounting for 40.2% of the total.

This was followed by Singapore (7.4%), Saudi Arabia (6.4%), Japan (5%), the United Kingdom (4.6%), the United Arab Emirates (4.2%), Canada (3.3%), Qatar (2.9%) Korea (2.8%) and Taiwan (2.7%).

Personal remittances increased by 3% to USD 15.34 billion at end-May from USD 14.89 billion a year prior.

“The slower global economy amid Trump’s tariffs could have slowed down OFW remittances volume recently,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., likewise noted the increased uncertainty due to tariffs.

“The tariff move adds to geopolitical and trade uncertainty, which may deter foreign direct investment (FDI),” he said.

US President Donald J. Trump first announced the initial round of tariffs it planned to impose on its trading partners in April.

Earlier this month, Mr. Trump sent out notices with the updated tariff rates it plans to impose.

“The imposition of a 20% tariff on all Philippine exports to the US starting Aug. 1, 2025 by President Trump is expected to have significant and multifaceted effects on the Philippine economy,” Mr. Ravelas added.

The Philippines was hit with a 20% reciprocal tariff, higher than the 17% announced in April.

“For the coming months, protectionist policies by Mr. Trump, particularly stricter immigration rules could weigh on some OFW remittances, especially from the US,” Mr. Ricafort said.

Mr. Trump has vowed mass deportations, which he says are needed after high levels of illegal immigration under his predecessor, Reuters reported.

Mr. Trump’s recently passed “One Big Beautiful Bill” also imposes a 1% excise tax on remittance transfers from the United States to other countries, effective after Dec. 31, 2025. This was lower than earlier proposals of a 3.5% levy.

The tax was also initially aimed at non-US citizens but now applies to any remittance sender.

“Trump’s threats of higher tariffs and other America-first policies could also slow down global trade, investments, employment including some OFW jobs, and overall world economic growth, thereby could also indirectly slow down the growth in OFW remittances,” Mr. Ricafort added.

This year, the central bank is projecting remittances to grow by 2.8%.  — Luisa Maria Jacinta C. Jocson, Senior Reporter