More OFW families turn to investments

MANILA, Philippines—The threat of job cuts abroad has prompted families of overseas Filipino workers to invest more than they used to, according to a survey by the Bangko Sentral ng Pilipinas (BSP).

The Consumer Expectations Survey for the second quarter, which was conducted during the first two weeks of April, said 8.3 percent of OFW households invested part of the remittances they had received. This was higher than the 5.9 percent of households reported in the first quarter survey.

In the second quarter of last year, only 3 percent of households invested their remittances in various instruments.

The survey covered 575 OFW households nationwide.

“The percentage of [OFW] households that devoted part [of their remittances] to investments increased appreciably,” the BSP noted in its survey. “The pattern was broadly similar for households in the National Capital Region and in [other] areas.”

The increase in the number of OFW households that have invested actively is consistent with public expectations that the level of unemployment in the country may worsen over the next 12 months.

The survey showed that the unemployment index stood at +73.6 percent.

The index is determined by subtracting the number of household-respondents that expect an increase in the unemployment rate from those that expect a decline.

According to data from the National Statistics Office, 7.7 percent of the country’s workers were unemployed as of January.

Officials said expectations that the unemployment problem could worsen in the months ahead were fueled by reports that the economy was slowing down, forcing some companies to cut spending and trim their workforce.

For this year, the government expects the Philippine economy, as measured in terms of gross domestic product, to grow by only 0.8 to 1.8 percent, a stark decline from last year’s 4.6 percent growth.–Michelle V. Remo, Philippine Daily Inquirer