go through Luisa Maria Jacinta C. Josen, Senior Reporter
Money sent homeOcean Philippines Workers (OFWS) Data from Bangko Sentral NG Pilipinas (BSP) show that May is 2.9% per year, although monthly runs are the lowest in 12 months.
Cash remittances through banks jumped to $2.658 billion in the same $2.583 billion in May, The central bank said Tuesday.
This is also the lowest level of monthly remittances in 12 months or since May 2024.
May’s remittance growth also slowed from a 4% rate in April, when cash remittances reached $2.664 billion.
The money sent by land-based workers rose from $2.06 billion to $2.12 billion from the same period a year ago.
Remittances from marine migrant workers jumped 3.1% annually to $536 million in May.
“The increase in cash remittances has driven the increase in individuals The same goes for remittances,” BSP said.
Individual remittances, including in-kind inflows, rose 3% to $2.97 billion in May, up from $2.88 billion in the previous year.
Breakdown, workers’ remittances on one year or more contracts increased by 2.8% to $2.29 billion, while contracts were less than one year Jumped 3.4% to $590 million.
Five months
exist The first fiIn VE, cash remittances rose 3% to $13.77 billion in the month, up from $13.37 billion in the same period year-on-year.
It was January to May to $10.94 billion in remittances rose by 3.3%, while ocean-based workers remittances were above 2%, to $2.82 billion.
The United States is the main source of remittances in the five-month period, accounting for 40.2% of the total.
Next are 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%), South Korea (2.8%) (2.8%) and Taiwan (2.7%).
Individual remittances rose 3%, up from $14.89 billion a year ago to $15.34 billion by the end of May.
“The global economy is slower as Trump’s tariffs may slow down remittances,” said Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.
Jonathan L. Ravelas, senior consultant for Reyes Tacandong & Co., also pointed out the increased uncertainty due to tariffs.
“Tariff moves increase geopolitical and trade uncertainty, which may prevent foreign direct investment (FDI),” he said.
U.S. President Donald J. Trump announced for the first time the initial round of tariffs planned to be imposed on his trading partners in April.
Earlier this month, Mr. Trump issued a notice with the latest tariff rates it plans to impose.
Mr. Ravelas added: “Starting August 1, 2025, President Trump imposed a 20% tariff on the United States starting on August 1, 2025, which is expected to have a significant and multifaceted impact on the Philippines economy.”
The Philippines suffered a 20% mutual tariff attack, up from 17% announced in April.
“In the coming months, Mr. Trump’s trade protectionist policies, especially stricter immigration rules, may make certain OFW remittances, Especially from the United States,” Mr. Riccaford said.
Mr. Trump vowed mass deportation, he said it was needed after illegal immigration under his predecessor.
Mr. Trump recently passed a “big beauty bill” that also imposed a 1% excise tax on transfers from the U.S. to other countries, which took effect.
The tax was originally targeted at non-U.S. citizens, but now applies to any sender of remittance.
Mr Ricafort added: “Trump’s threat to higher tariffs and other U.S. first-time U.S. policies could also slow down global trade, investment, including some OFW employment and global economic growth threats, thereby indirectly slowing down the growth of OFW remittances.”
This year, the central bank expects remittances to grow by 2.8%.
