Philippine Remittances Hit Five-Month Low as October Growth Moderates

Overseas Filipino remittances posted their slowest expansion in five months during October, with the Bangko Sentral ng Pilipinas (BSP) reporting a year-on-year increase of just 3% in cash transfers through banking channels. The figure illustrates how remittance flows have decelerated from earlier momentum, settling at $3.171 billion compared to $3.009 billion in October of the previous year.

According to the central bank’s latest bulletin, this modest growth represents a notable pullback from summer levels, marking the weakest pace since May when remittances climbed by 2.9%. Despite the slowdown, October’s inflow still ranked as the strongest monthly reading in the past quarter, slightly exceeding July’s $3.179 billion figure.

Month-to-Month Momentum and Ten-Month Trajectory

On a sequential basis, remittances rose 1.6% from the prior month’s $3.121 billion, suggesting stabilization after the earlier deceleration. Looking at the broader picture, the January-through-October cumulative total reached $29.202 billion, reflecting a 3.2% annual uptick from $28.304 billion recorded in the same period last year. The BSP’s consolidated statement noted that personal remittances—encompassing bank transfers, informal channels, and in-kind contributions—climbed to $3.519 billion in October from $3.415 billion twelve months prior, also expanding at 3%.

Geographic Concentration Continues

The United States maintained its position as the dominant source of remittance inflows during the ten-month window, trailed by Singapore and Saudi Arabia. This geographic concentration underscores how Filipino overseas workers’ income streams remain heavily dependent on labor markets in specific jurisdictions.

The year-to-date personal remittance aggregate reached $32.493 billion, up 3.2% from $31.487 billion a year earlier, reinforcing that while growth persists, the expansion rate has cooled considerably from the trajectory seen in prior quarters.