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OFW families turn to savings — BSP survey


More beneficiaries of overseas Filipino workers (OFWs) are turning to savings instead of buying houses and lots, appliances, and motor vehicles, a survey conducted by the Bangko Sentral ng Pilipinas (BSP) showed. BSP Deputy Gov. Diwa Guinigundo said the fourth quarter 2010 Consumer Expectations Survey (CES) showed an increase in the percentage of households with family members abroad that allocated portions of their remittances to savings and a decline in the percentage for those shifting to investments and other major purchases. Guinigundo underscored that the number of Filipinos who save money sent home by their relatives abroad rose to 43.7 percent in the fourth quarter of the year from 43 percent in the third quarter. He pointed out that the percentage of Filipino families with relatives working overseas who are turning to savings has increased significantly from 7.2 percent in the first quarter of 2007 when the survey started. On the other hand, he explained that the percentage of those who apportioned part of their remittances for major purchases and investments declined. “The percentage of OFW households that utilized their remittances to savings climbed to 43.7 percent from 43 percent in the third quarter. Meanwhile, the percentage that apportioned part of their remittances to purchase consumer durables, houses and lots, and motor vehicles declined compared to the previous quarter's results," the BSP added. The survey revealed that the percentage of those who used the money sent home by relatives abroad to purchase appliances slipped to 28.9 percent in the fourth quarter from 31 percent in the third quarter while those who allocated their remittances for the acquisition of house and lot declined to 11.3 percent from 15.5 percent. Meanwhile, those who used the money sent home by their loved ones abroad to buy cars fell to 7.7 percent in the fourth quarter from 11.3 percent in the third quarter. Furthermore, the data showed that beneficiaries of OFWs who invest their remittances declined to 5.8 percent from 7 percent. Food, education, medical expenses up Guinigundo added that OFW households continue to utilize their remittances primarily for food, education, medical expenses, and debt payments in the fourth quarter of the year. The survey showed that those who apportioned their remittances for food reached 96.7 percent in the fourth quarter while those who allocated the money for education hit 72.6 percent and those that used the money for medical expenses reached 61.1 percent and to pay loans at 49.8 percent. The BSP recently upgraded its growth forecast for money sent home by overseas Filipinos to 8 percent, from 6 percent, due to the strong demand for skilled Filipino workers. OFW remittances rose 7.8 percent to $13.782 billion in the first nine months of the year from $12.789 billion in the same period last year, as the amount of money sent home by sea-based workers increased by 11.4 percent while that of land-based workers went up by 6.9 percent. Major sources of remittances that accounted for 84 percent of the money sent home through banks from January to September this year included the US, Canada, Saudi Arabia, Japan, United Kingdom, United Arab Emirates, Singapore, Italy, and Germany. Last year, remittances grew by 5.4 percent to a record $17.348 billion from $16.426 billion in 2008 exceeding the revised 4-percent growth forecast by the central bank. — MRT/VS, GMANews.TV

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