The bulk of so-called non-financial assets households across the Philippines own consist mainly of home appliances, according to the Consumer Finance Survey (CFS) the Bangko Sentral ng Pilipinas (BSP) conducted in 2021. A little over a third, or 35.3 percent of the assets, are motor vehicles, typically motorcycles, the BSP said in a report released late Friday.
The BSP said the 2021 CFS revealed trends in Filipino household wealth that hold significant economic implications. Non-financial assets, particularly home appliances, residential properties, and vehicles, continue to form the backbone of household wealth. Home appliances were owned by 96.6 percent of Filipino households, while 69.9 percent owned residential properties, and 35.3 percent possessed vehicles, with motorcycles being the most common type of vehicle.
The survey also highlighted a growing trend of digital financial products, with e-money accounts seeing significant growth, reflecting the increasing demand for remote access to financial resources amid the pandemic. Financial asset ownership, such as deposit accounts, rose, reflecting increased banking activity, while liabilities dropped significantly, with only 29.3 percent of households carrying debt, compared to 40.4 percent in 2018.
In terms of income, wages were the primary source for 91.5 percent of households, a marked increase from 73.7 percent in 2018. This surge was largely driven by government employment initiatives to combat pandemic-related job losses. Meanwhile, government aid programs, such as cash subsidies, played a crucial role in supporting struggling households during the crisis.
Spending patterns showed that food and beverages consumed at home accounted for the largest portion of household expenditures, making up 55.4 percent of total spending. However, non-essential items like personal care and recreation accounted for 8.6 percent, indicating a shift toward more essential consumption during uncertain economic times.
The survey’s findings underscore the evolving financial behavior of Filipino households, with a greater reliance on savings and fewer liabilities. The BSP report also noted that the country’s relatively young and healthy population offers significant potential for economic growth if investments are made in education and health services.
The analysis, observers saide, provides critical insights into the economic condition of Filipino households, which are pivotal for understanding the broader national economic landscape.
