By Luisa Maria Jacinta C. Jocson, Reporter

MONEY SENT HOME by migrant Filipinos rose by 2.9% year on year in January, the Bangko Sentral ng Pilipinas (BSP) said on Monday.

Cash remittances from overseas Filipino workers (OFWs) coursed through banks increased by 2.9% to $2.92 billion in January from $2.84 billion in the same month in 2024.

The 2.9% annual growth in January was a tad slower than the 3% expansion seen in December 2024.

Month on month, remittances declined by 13.7% from $3.38 billion in December.

Cash remittances in January were also the lowest level in two months or since $2.81 billion in November.

BSP data showed remittances from land-based workers jumped by 3.4% to $2.33 billion in January from $2.25 billion a year ago. 

Sea-based OFWs sent home $587 million during the month, inching up by 0.9% from $582 million in the previous year.

“The growth in cash remittances from Saudi Arabia, the United States, Singapore, and the United Arab Emirates (UAE) mainly contributed to the increase in remittances in January 2025,” the central bank said.

In January, the US remained the top source of remittances, accounting for 41.2% of the total.

This was followed by Singapore (7.5%), Saudi Arabia (6.6%), Japan (5.7%), and the United Kingdom (4.7%).

The UAE (3.5%), Canada (3.1%), Taiwan (2.8%), Qatar (2.8%), and Malaysia (2.4%) were also main sources of cash remittances.

Remittances from the top 10 countries accounted for over 80% of overall remittances during the month.

Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said the 13.7% month-on-month drop in cash remittances is “not alarming” as this was a seasonal effect as the bulk of remittance flows is usually seen in the fourth quarter.

“The month-on-month slowdown of remittances is expected as the effects of the holiday season came to a close,” Reinielle Matt M. Erece, economist at Oikonomia Advisory and Research, Inc., said.

“Typically, remittances grow faster during the latter months of the year as families celebrate the holidays,” he added.

Meanwhile, central bank data showed personal remittances, which contain inflows in kind, increased by 2.9% to $3.24 billion in January from $3.15 billion in the same month in 2024.

“The increase was observed in remittances from both land-based and sea-based workers,” it added.

Remittances from workers with contracts of one year or more rose by 3% to $2.52 billion, while those with contracts less than one year went up by 2.5% to $650 million.

In the coming months, Mr. Erece said risks arising from global economic uncertainty could dampen remittance flows.

“This year, we should monitor the persistent global economic uncertainty caused by trade wars and geopolitical tensions, which may cause a bit of a slowdown in remittances as OFWs cushion the risks of higher living costs abroad,” he said.

Markets are pricing in the potential impact of US President Donald J. Trump’s barrage of tariffs on the rest of the world. Among these proposals is a reciprocal tariff that Mr. Trump has pledged to impose on all of the US’ trading partners. 

“We should also monitor the exchange rate, influenced by the Fed and BSP’s respective monetary policies. A cautious Fed can cause a peso depreciation, enticing OFW remittances to take advantage of an elevated peso value of the dollar,” he added.

While the US central bank is expected to keep interest rates unchanged on Wednesday, its commentary on the impact of tariff policies on US inflation and growth will also be closely watched, Reuters reported.

Cash remittances rose by an annual 3% to $34.49 billion in 2024. The BSP expects remittances to grow by 3% this year.