How are Remittances to the Philippines Being Spent?

How are Remittances to the Philippines Being Spent?

  Majority of Remittances Go to Food, Health, and Education   Have you ever wondered where your remittances are going? Bangko Sentral ng Pilipinas conducts a quarterly survey to determine consumer sentiment and measure consumer confidence. One part of the survey delves into the expenses of households that receive remittances. The latest Consumer Expectations Survey was done on the last quarter of 2014.   Money sent to the Philippines by Filipinos working overseas primarily went to food, education, medical expenses, and debt payments, according to Bangko Sentral ng Pilipinas’ Fourth Quarter 2014 Consumer Expectations Survey. Among the 558 households receiving cash remittances, 96.1 percent used the money to purchase food and other household necessities. Nearly three-fourths of the households used a portion of their remittances for education, while more than half allocated part of their remittances for medical expenses. More than 40 percent of the households surveyed used part of their remittances for debt payments.   “The percentage of OFW households that utilized their remittances for savings rose to 42.1 percent from 39.7 percent in the previous quarter. Meanwhile, those that allotted their remittances for investment and for the purchase of consumer durables and house remained steady,” stated BSP. Furthermore, households that allocated a portion of their remittances to vehicle purchases decreased.   Remittances to the Philippines from Filipinos working in foreign places, such as Australia, the United States, and the Middle East, remain a main driver of the country’s consumer spending.   The Fourth Quarter 2014 Consumer Expectation Survey was conducted during the first two weeks of October 2014. The households surveyed were chosen through random sampling. Out of the 6,389 households surveyed, 3,212 were from NCR and 3,177 were from other parts of the Philippines.   References: http://www.bsp.gov.ph/publications/media.asp?id=3619 http://www.bsp.gov.ph/downloads/Publications/2014/CES_4qtr2014.pdf
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