Filipino households cut back on spending during pandemic

CEBU, Philippines —  Despite the ongoing threat of the pandemic, fewer Filipino household reported current decrease in income.

In a survey conducted by TransUnion, a global information and insights company, it revealed that for the fourth quarter of 2021, fewer Filipino household or 59 percent reported a current decrease in income due to the pandemic compared to the previous quarter’s 64 percent.

Despite that positive direction, more than half or 52 percent of respondents surveyed said they had cut back on discretionary spending in the last three months. With 52 percent of respondents ascribing to the belief that access to credit and lending products is important to achieve financial goals, close to half or 44 percent said they were planning to apply for credit in the next year.

The TransUnion Philippines Consumer Pulse Study surveyed 1,089 adults in the Philippines to discover findings on the financial impact of COVID-19 on consumers. The study was conducted from Nov. 1-8, 2021, with respondents ranging from different Philippine resident demographics from Gen Z (born 1995-2003), Millennials (born 1980-1994), Gen X (born 1965-1979), and Baby Boomers (born 1944-1964).

“From financial health to the disruptions in daily living, the lives of millions of Filipinos have drastically changed and continue to change due to COVID-19,” said Pia Arellano, President and CEO of TransUnion Philippines.

“As an ongoing study, TransUnion Philippines continuously strives to develop a comprehensive understanding of the financial impacts of the pandemic as well as to harness the information to better inform consumers, businesses and other stakeholder decisions as the pandemic continues to impact our daily lives,” Arellano added. 

Close to half (46%; decreased by 8 percentage points from 3rd quarter 2021) of respondents surveyed believe their household income (HHI) will decrease in the future due to COVID-19. There is a belief that vaccinations are a possible contributing factor to a growing optimistic economic outlook.

Among the 64 percent of the population who said they had been fully vaccinated, 13 percent reported never having their HHI decrease due to COVID-19, and they expect less negative impact in the future (44 percent compared to 50 percent of those who do not plan on getting vaccinated).