OFW families saving less in Q3

MANILA, Philippines - Households receiving remittances from family members working abroad appear to have saved less money in the third quarter, according to a Bangko Sentral ng Pilipinas survey.

“The percentage of OFW (overseas Filipino worker) households that utilized their remittances for savings decreased to 34.3 percent from 39.4 percent... as more respondents allocated their remittances to pay debts,” the BSP said in its latest Consumer Expectations Survey.

The survey showed the bulk of remittances from abroad are used by the recipients to buy food and other household needs, fund education expenses, finance medical needs, and pay debts.

The number of respondents that used remittances for household expenses went up to 97.7 percent in July to September from 95.4 percent in the second quarter, while those that utilized the funds for education expenses rose to 68 percent from 67 percent.

Recipients who used money sent home by Filipinos abroad for medical expenses also climbed to 59.5 percent from 54.9 percent, while families who utilized the funds to pay their debts increased to 43.5 percent from 42.1 percent.

But the BSP also noted “those that allocated their remittances for the purchase of consumer durables went down compared to the previous quarter.”

“Meanwhile, those that apportioned part of their remittances for investment, purchase of real property and motor vehicles remained broadly steady in the third quarter,” the central bank said.

Results of the survey showed families that used remittances to buy appliances and other consumer durables slid to 24.5 percent from 25.9 percent, while those who used it for the purchase of a house fell to 7.8 percent from 8.4 percent.

At the same time, the number of those who used remittances to purchase cars or other motor vehicles dropped to 6.2 percent from 6.5 percent.

However, it is interesting to note that the number of households who used remittances for investing in businesses or stocks went up to 4.8 percent during the third quarter from 3.8 percent.

“By geographical area, the utilization pattern of NCR (National Capital Region) and AONCR (areas outside NCR) consumers broadly followed the national trend,” the survey said.

“However, in AONCR, more respondents apportioned their remittances to investment and purchase of consumer durables during the quarter compared to the last quarter’s survey while fewer OFW households spent their remittances on education, debt payments and purchase of motor vehicles,” it was noted.

Money sent home by Filipinos abroad amounted to $1.916 billion in June, bringing the first-half figure to $10.7 billion.

The central bank expects remittances to grow by five percent this year over last year’s level of $21.391 billion.

The latest Consumer Expectations Survey was conducted from July 1 to 12 and covered 5,763 households.