More Filipinos saved money in Q1

MANILA, Philippines — More Filipinos are saving up their money to prepare for emergencies particularly health and hospitalization, according to a survey conducted by the Bangko Sentral ng Pilipinas (BSP).

According to the first quarter Consumer Expectation Survey (CES) conducted by the BSP, the percentage of households with savings reached an all-time high of 37.8 percent in the first quarter from the previous quarter’s 36.3 percent.

 “The higher number of savers was due to the increase in the number of households with savings in the middle-income groups, which more than offset the decrease in the number of savers in the high- and low-income groups,” the BSP said.

By geographical area, the number of savers in the National Capital Region (NCR) increased to 44 percent from 42.5 percent and in areas outside NCR to 36.8 percent from 35.3 percent.

According to the survey, respondents saved money for emergencies, health and hospitalization, education, retirement as well as business capital and investment.

Among households with savings, the percent of savers that kept their money in different types of savings institutions climbed to record highs for the first quarter, 73.9 percent in banks, 60.2 percent at home, and 50.9 percent in cooperatives, paluwagan, other credit/loan associations, or in investments.

The survey conducted from Jan. 29 to Feb. 10 covered 5,555 households nationwide.

The survey showed that more Filipinos turned less optimistic for the second quarter and the next 12 months primarily due to concerns about the   coronavirus disease 2019 or COVID-19 pandemic as well as natural disasters such as the eruption of Taal Volcano and faster increase in prices and higher household expenses.

Likewise, the survey also showed that more households are opting to save the money sent home by their loved ones from abroad.

The percentage of OFW households using remittances to save increased to 44.7 percent from 38.5 percent in the previous quarter as well as to invest to 6.1 percent from 5.1 percent.

Of the 494 households included in the survey that received OFW remittances for the fourth quarter, 93.9 percent used the remittances to purchase food and other household needs.

The percentage of OFW households that apportioned their remittances for education increased to 66.8 percent and medical expenses to 51 percent.

Likewise the percentage of OFW households that used remittances for the purchase of appliances increased to 23.3 percent and houses to 13.6 percent, while those who purchased motor vehicles declined to 5.9 percent.

Remittances are expected to decline sharply this year due to the projected global economic slump arising from the impact of the coronavirus pandemic.