Remittance Growth Slows to Nearly Three-Year Low in Risk for Philippine Economy

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Or sign-in if you have an account.49zrx)2acnpi0{]h6wq1umz7_media_dl_1.png Bangko Sentral ng Pilipinas(Bloomberg) — Money sent home by Filipinos working overseas grew at the slowest pace in nearly three years in March, reflecting the impact of the global energy crisis sparked by the Iran war and signaling more weakness in the Philippine economy.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountCash remittances rose 2.3% from a year ago to $2.87 billion in March, the weakest pace since June 2023. It was also slower than the 2.5% median estimate in a Bloomberg News survey. Remittances account for about 10% of the Philippines’ gross domestic product, a far higher proportion than in countries like India and China, which also have huge numbers of citizens working overseas. They are a key source of dollars and drive consumption in the Southeast Asian nation. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againMarch was the first whole month since the Iran war began and the moderation in growth in remittances is unlikely to have reflected the full impact of the Iran war, according to Nomura Holdings chief Asean economist Euben Paracuelles. “We see these effects playing out in the coming months given signs of weakening worker deployment and likely slumping economic activity in host countries in the Middle East,” he said. There are around 2.4 million Filipinos employed in the Middle East and Saudi Arabia is the top source of remittances from the region. Since the Iran war began, Manila has repatriated more than 9,000 Filipinos who lost jobs or opted to come home, but thousands more are believed to have returned on their own.Money sent home by Filipino workers abroad fuel consumption in the economy which expanded by only 2.8% in the first quarter, the slowest pace outside the pandemic since the end of 2009. Household spending was the weakest since 2010.But the Philippine central bank said in late March that remittances are still expected to grow by 3% this year and next “as there remain no signs of mass repatriation or widespread deployment bans.” Remittances grew 3.3% in 2025.Economic managers will review all targets next week. Paracuelles said the initial numbers for remittances are “fairly soft” and that economic growth “will likely remain low in the second quarter or so, with some downside risks.”This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.