More OFW households turn to savings

More Filipino households receiving remittances from loved ones abroad are turning to savings, the results of a quarterly survey conducted by the Bangko Sentral ng Pilipinas (BSP) showed.

Rosabel Guerrero, director of the BSP’s Department of Economic Statistics (DES), said the latest Quarter Consumer Expectation Survey showed the percentage of OFW households using remittances to save improved to 42.3 percent in the fourth quarter from 42.1 percent in the previous quarter.

The percentage of OFW households using remittances to save was almost six times the 7.2 percent recorded when the CES was launched in the first quarter of 2007.

On the other hand, she said the percentage of OFW households using remittances for investments declined to 5.9 percent from 8.5 percent in the previous quarter.

Data showed the level of OFW households using remittances for investments was more than double the 2.3 percent recorded when the CES was launched 10 years ago.

Latest data from the central bank showed personal remittances climbed 4.8 percent to $23.16 billion in the first nine months from $22.11 billion, while cash remittances inched up 3.8 percent to $20.78 billion from $20.02 billion.

Of the 471 households included in the survey that received OFW remittances for the fourth quarter, 97.2 percent used the remittances to purchase food and other household needs.

The proportion of households that allotted part of their remittances for education stood at 62.6 percent, purchase of consumer durables at 23.4 percent, and purchase of house at 14.2 percent.

Meanwhile, the percentage of OFW households which allocated part of their remittances for medical expenses stood at 54.1 percent, debt payments at 42 percent, purchase of motor vehicle at 8.5 percent.

Meanwhile, more respondents expected interest and unemployment rates to rise and the peso to depreciate against the dollar over the next 12 months compared to a quarter ago.