THE NUMBER of Filipino households that saved a portion of the remittances they received from migrant family members declined in April, according to the latest survey conducted by the Bangko Sentral ng Pilipinas.
Results of the Consumer Expectations Survey showed that out of 545 households receiving money from abroad, only 38 percent said they had set aside a portion of the remittances for savings.
A Filipino family eating at a mall fastfood in the Philippines. Photo credit: http://www.flickr.com/photos/bibs_reyes/
This was sharply lower than the 50.4 percent registered during the previous survey conducted in January, and slightly down from 38.3 percent recorded the previous year.
According to central bank officials, the drop in the number of households that had set aside cash for savings could signal an even faster rise in consumption in the second quarter, which could support healthy growth of the economy. Money not saved may be used for consumption or investment, they explained.
Rising consumption has its advantages, as demand for goods and services helps increase economic activity, they explained.
But Filipino households are still being encouraged to save a portion of the remittances they get to secure their future, central bank officials said. Savings, especially deposits in banks, form part of funds that are lent out to support investment initiatives.
Meanwhile, the number of OFW households that had earmarked a portion of remittances for investments also dropped year-on-year.
More at Inquirer.net
Loading ...