Filipino savers grow at all-time high – BSP

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By: Lee C. Chipongian, Manila Bulletin

The Bangko Sentral ng Pilipinas (BSP) said households with savings is at an all-time high in terms of percentage growth with majority of savers have their money deposited in the banks, a quarterly survey of the Bangko Sentral ng Pilipinas (BSP) showed.

The third quarter Consumer Expectations Survey (CES), with a sample size of 5,676 households, indicated more savers than in previous quarterly surveys.

For the third quarter, the percentage of households with savings reached a high of 37.5 percent from 35.2 percent in the second quarter 2019. “The higher number of savers was observed across income groups,” according to the CES report.

The BSP said households set aside money or savings for the following reasons: Emergencies; health and hospitalization; education; retirement; business capital and investment; and purchase of real estate.

The majority of the households that participated in the survey were from the middle-income group or 43.5 percent. About 32.1 percent were in the low-income group and 24.4 percent in the high-income group.

According to the BSP, the majority of savers or about 66.9 percent have bank accounts and deposited their savings in banks.

This was a higher turnout in terms of percentages compared to 67.1 percent in the previous quarter.

The CES also reported that households with an Overseas Filipino Worker (OFW) as member use their remittances more as savings and investments during the quarter.

The CES surveyed 491 households that are beneficiaries of OFW remittances for the third quarter.

About 96.1 percent used the remittances to buy food and other household needs. The survey also noted that 68.8 percent allot remittances for education and 11.4 percent for the purchase of a house. About 6.5 percent use remittances to buy motor vehicles. About 37.3 percent are for savings, 23.6 percent for debt payments and 20.6 percent for the purchase of consumer durables. Another 7.9 percent said they use remittances for investments.

Overall, the BSP said the CES yielded a positive confidence index of 4.6 percent in the third quarter from -1.3 percent in the previous survey.

 

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