By Lawrence Agcaoili (The Philippine Star) | Updated March 28, 2016 - 12:00am
MANILA, Philippines – More households that received remittances from their loved ones abroad allocated portions of the inflows into savings and investments this quarter.
Results of the latest Consumer Expectations Survey (CES) showed an increase in the number of overseas Filipino workers’ households allocating remittances for savings to 43.4 percent in the first quarter of the year from 41.4 percent in the fourth quarter of last year.
Likewise, the number of households that allocated remittances for investments was steady at 6.5 percent.
BSP deputy governor Diwa Guinigundo said the percentage of OFW households using remittances to save as of the first quarter was almost six times the 7.2 percent recorded in the first quarter of 2007 when the CES was launched.
Likewise, Guinigundo said the percentage of OFW household investing remittances was almost three times the 2.3 percent level when the survey was first conducted.
The latest survey showed the overall confidence index improved to -5.7 percent in the first quarter from -8.1 percent in the fourth quarter of last year, matching the all-time high of -5.7 percent booked in the second quarter of 2013.
“They are more optimistic about the outlook and if the economic conditions are improving and the family financial situation is improving and they perceive their family income is improving then you can expect that they will continue to be more optimistic,” he said.
“That can be translated into higher savings since they can afford to set aside a higher percentage of their income to save. And for those who have higher savings some have gone into actual investment,” Guinigundo added.