Households Remain Prime Savers – BSP
By LEE C. CHIPONGIAN
December 27, 2012, 4:48pm
The Bangko Sentral ng Pilipinas (BSP) said the household sector remains
to be the prime saver in the economy for the last four years, partly
because of foreign exchange remittances and perception of improved labor
conditions.
In its latest flow of funds (FOF) data for 2011, the BSP reported that
the household sector registered savings of P909.8 billion or an increase
of 6.3 percent over 2010 figures. The BSP said this rate of savings
growth may be attributed to inflows from funds sent home by overseas
Filipinos.
Last year, the total domestic savings went up 6.8 percent to P1.854
trillion. "The economy's savings momentum is sustained, notwithstanding
challenges on the external front," noted the BSP.
The second biggest savers in the economy are the non-financial
corporations sector with P672.5 billion, mainly profits from the
services sectors.
The general government sector, in the meantime posted the highest growth
in savings at 65.3 percent at P193.6 billion while the National
Government's (NG) position reversed from a "dissaving" of P17.6 billion
in 2010 to a savings of P28.8 billion in 2011, the BSP reported.
As for the financial sector's savings, this dropped to P78.4 billion
because of "large benefit payments" by the life insurance industry along
with the higher interest payments by the BSP.
The FOF as reported by the central bank is a summary of financial
transactions among the different institutions of the economy, and
between these institutions and the rest of the world. It identifies
which institutions are net borrowers and net lenders after a series of
financial transactions for the year. There are four categories:
financial corporations, non-financial corporations, the general
government, and the households.
In 2011, the economy's capital accumulation grew by 16.2 percent to
P1.544 trillion. The household sector was the biggest accumulator of
capital at P661.4 billion but sector's real investments grew only 12
percent compared to 2010's 31.1 percent because of the lower demand for
residential condominiums.
The non-financial corporations sector's real investments in the meantime
increased 53.2 percent which the BSP described as a "mixed investment
sentiments across sub-sectors." The growth of private companies' real
investments slowed down to 9.4 percent from 72.9 percent due to weak
global economic growth.
The BSP also said that in 2011, all sectors were considered net lenders,
except for the general government.
"The household sector regained the top net lender position at P248.4
billion, with currency and deposits as the desired form of asset
accumulation (while) the non-financial corporation sector's net fund
provision fell by 70.8 percent to P79.7 billion, with accounts
receivables as the dominant financial instrument," the report said.
The financial sector's net lending grew by 19.9 percent to P38.1 billion
as the combined increase in net lending of banks and the insurance
sector outweighed the BSP's net borrowing, said the central bank.
The domestic economy's net lending vis-à-vis the rest of the world on
the other hand, fell by 23.9 percent to P309.5 billion. The BSP said
this is as "growth in capital accumulation outpaced the growth in total
savings."5:17 AM 12/28/2012
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
