BSP: More OFW families saving, investing in Q1

Families of overseas Filipino workers (OFW) are now saving and investing a larger portion of the remittances they receive from their loved ones abroad, a Bangko Sentral ng Pilipinas survey showed. In its consumer expectations poll, the Bangko Sentral said the percentage of OFW households that utilized their remittances or savings rose to 42.5 percent in the first quarter from 39.5 percent in the fourth quarter of last year. Likewise, the proportion of remittance recipients who invest in vehicles such as business capital or stocks increased to 5.8 percent from 3.1 percent previously. "The various programs of the BSP and other agencies on financial literacy have somewhat provided support to the decision of many households to allocate more portion of their earnings into savings and to some extent investments," Bangko Sentral deputy governor Diwa Guinigundo told reporters. Guinigundo, likewise, said the stable rise of consumer prices could also be attributed to the higher proportion of OFW families who save and invest. Inflation averaged at 3.2 percent in 2012, which is at the lower end of the Bangko Sentral's 3 to 5 percent target. Inflation in March is seen settling between 2.8 to 3.7 percent. However, families of OFWs still use bulk of the money sent back home for food and education. Some 96.6 percent of respondents used remittances for food, while more than two thirds or 67.2 percent of the households surveyed allocated a portion of their remittances for education. Over half or 59.1 percent of households spent remittances for medical payments, while 42.2 percent utilize the money they got for debt payments.   Remittances grew 8.4 percent to $1.9 billion in January this year from $1.7 billion last year, latest Bangko Sentral data showed. In 2012, remittances hit $23.8 billion, higher by 6.4 percent compared to the level recorded in 2011. The number of OFWs sending money back home increased by seven percent to 1.8 million from 1.69 million in 2011, according to latest data from the Philippine Overseas Employment Administration. — BM, GMA News