More OFW beneficiaries setting aside savings

The number of overseas Filipino worker (OFW) beneficiaries that allocated part of their remittance proceeds to savings picked up in the first quarter of this year, according to the Bangko Sentral ng Pilipinas (BSP). In its latest Consumer Expectations Survey, the BSP said the percentage of OFW households that allocated a portion of their remittances to savings rose to 50.4 percent from 44.8 percent in the fourth quarter of 2009.

OFW households that invested part of their remittance proceeds, however, fell to 5.8 percent from 7.1 percent in the final three months of last year.

Of the 534 respondents that benefited from remittances in the first quarter, 97 percent spent part of their money on food and other household needs, 69.5 percent on education expenses, 56.7 percent on medical expenses and 48.5 percent on debt servicing.

The percentage of OFW households that used remittances to purchase consumer durables and motor vehicles was broadly steady at 30 percent and 6.6 percent, respectively.

Those that apportioned part of their remittances for amortization or full payment of houses increased to 15
percent from 10 percent the previous year.

Households that set aside for debt payments fell to 48.5 percent from 49.2 percent.

The survey showed that more households expect their expenditures on basic goods and services to go up in the second quarter partly because of the anticipated increase in prices and improvement in household income.
–LAILANY P. GOMEZ, Manila Times