The ongoing conflict between Israel and Iran has yet to significantly impact overseas Filipino worker (OFW) remittances, but the Philippine government remains on alert should hostilities spread further across the Middle East, Malacañang said Thursday.
Presidential Communications Office (PCO) Undersecretary Claire Castro, citing information from the Department of Finance (DOF), said current data show no major disruption in remittance inflows from the affected countries.
“We spoke with Usec. Alu (Maria Lualhati Tiuseco) of the DOF and she says that, as of now, there is no significant impact on OFW remittances,” Castro said.
According to DOF figures, remittances from Israel and Iran totaled $106.4 million in 2024—equivalent to just 0.03% of the country’s total remittance inflows for that year.
“The impact on remittances remains limited for now,” DOF Undersecretary Tiuseco is quoted as saying.
However, Castro warned that a broader regional escalation could pose a more serious threat to OFW earnings and deployment.
“An escalation that could include the rest of the Middle East will have a substantial effect on overall remittances,” she noted.
Beyond remittances, the government is also monitoring the potential economic ripple effects of the conflict, especially in relation to oil prices.
“When the price of crude oil increases, the prices of goods in the market also increase,” Castro explained, adding that such developments could affect household consumption and dampen the country’s economic growth prospects.
The Department of Migrant Workers and the Department of Foreign Affairs are continuing to assess the situation, particularly in countries with high concentrations of OFWs, while contingency plans remain in place should the crisis worsen.
