Filipino households with savings hit all-time high on 3rd quarter

MANILA, Philippines — The percentage of Filipino households with savings at present reached an all-time high in the third quarter as consumers expect inflation, interest and unemployment rates to increase and the peso to weaken against the dollar, according to the results of a quarterly survey conducted by the Bangko Sentral ng Pilipinas.

Redentor Paolo Alegre, director of the BSP’s Department of Economic Statistics (DES), said the latest Quarter Consumer Expectation Survey showed the percentage of households with savings reached a new record high of 37.5 percent in the third quarter from 35.2 percent in the second quarter.

“The higher number of savers was observed across income groups,” he said.

Alegre said the respondents said they are saving money for emergencies, health and hospitalization and education.

Other reasons, he said, include for retirement, business capital and investment or for the purchase of real estate.

The survey conducted from July 1 to 13 covering 5,488 households nationwide showed majority of the savers at 66.9 percent kept their money in a bank, slightly lower than the 67.1 percent in the previous quarter.

On the other hand, about 43.6 percent kept their savings at home and 32.9 percent placed their money in cooperatives, paluwagan or other credit or loan associations and as investments such as insurance.

Alegre added the percentage of respondents that committed to set aside money for savings also increased to 45.3 percent in the third quarter from 42.3 percent in the second quarter.

“The proportion of those that would set aside less than 10 percent of their monthly gross family income rose, while those with 10 percent or more allocation for savings declined to 31.2 percent from 36.8 percent,” he said.

According to Alegre, consumers still expect inflation to increase at 4.3 percent over the next 12 months, exceeding the BSP’s two to four percent target.

Likewise, the survey showed the percentage of households using remittances from overseas Filipino workers to save increased to 37.3 percent in the third quarter from 33.9 percent.

Alegre said the percentage of households using remittances to invest also increased to 7.9 percent from 7.6 percent.

“OFW households that utilize their remittances for savings and investment increased for the current quarter,” he said.