OFW families saving more in 4th quarter

MANILA, Philippines - Beneficiaries of overseas Filipino workers (OFWs) are saving more in the fourth quarter of the year, but are able to buy more consumer durables such as appliances in time for the Christmas season, a survey conducted by the Bangko Sentral ng Pilipinas (BSP) showed.

Results of the BSP’s Fourth Quarter 2011 Consumer Expectations Survey (CES) showed that the percentage of households of OFWs that set aside money for savings has increased to 42.6 percent in the fourth quarter of the year from 35.5 percent in the third quarter

“The percentage of OFW households that utilized their remittances for savings increased to 42.6 percent from 35.5 percent in the third quarter of 2011,” Department of Economic Statistics director Rosabel Guerrero said.

She pointed out that OFW families that used their remittances to buy consumer durables increased to 27.4 percent from 26.9 percent while those that used their money to buy houses likewise rose to 11.4 percent from 9.3 percent. A sharp rise was also noted for those who used remittances to acquire motor vehicles to 8.3 percent from 5.7 percent.

“Those that apportioned part of their remittances to purchase consumer durables, housing, and motor vehicles also went up compared to the previous quarter’s survey results,” she added.

However, she said the survey showed a drop in the number of OFW households that use remittances for investments to 6.4 percent in the fourth quarter of the year from 9.1 percent in the third quarter, but increased compared to 5.8 percent in the fourth quarter of last year.

“Meanwhile, the percentage that apportioned part of their remittances for investment dropped quarter-on-quarter but increased year-on-year,” she said.

The BSP has been encouraging beneficiaries of remittances from their loved ones working overseas to save and invest regularly to improve the financial condition of the Philippine economy.

Of the 563 households that received OFW remittances in the fourth quarter of 2011, about 95 percent used remittances for food while 70 percent allocated their remittances for education. Close to 61 percent used remittances for medical payments and 45.8 percent for debt payments.

OFW remittances climbed 6.2 percent to hit a new monthly record of $1.78 billion in October despite the challenges posed by global economic and financial headwinds. Remittances surpassed the previous monthly record of $1.737 billion booked last June and was $104 million higher than the $1.673 billion recorded in October last year.

BSP traced the higher level of remittances in October to higher cash transfers by Filipinos abroad to their beneficiaries who were affected by typhoons Quiel and Pedring last September.

OFW remittances went up seven percent to $16.534 billion in the first 10 months of the year from $15.456 billion in the same period last year.