Poll Says That Filipinos Choose to Save More in Anticipation of Recession and Inflation

The 2022 Q3 TransUnion Consumer Pulse Study reported that Filipinos are opting to grow their savings amidst predictions of an incoming recession and the continuous rise in services and goods.

54% of Filipino respondents have stated that they have lessened their discretionary spending on entertainment, travel, and dining over the past three months as said in the study.

“Most Filipinos [76 percent] agreed the economy is either already in a recession or will enter one by the end of 2023, while almost half [44 percent] cited inflation for everyday goods as their biggest concern affecting their household finances for the next six months.”

Philippine Statistics Authority (PSA) has said that inflation rose in September to 6.9% from August’s rate of 6.3%.  Analysts are saying that the hikes may make central banks increase borrowing costs and rates for consumers and businesses.

The survey was conducted from August 19 to September 1, 2022.

From the survey, 1, 013 Filipino adults indicated inflation as the number one household financial concern in the incoming six months, followed by anticipation of a global recession. In light of the predicted recession, 66% have indicated that they are gathering more savings.

“These financial concerns could be exacerbated by fewer Filipinos [78 percent compared to 81 percent in Q2 2022] expecting their incomes to go up in the next 12 months,” mentions TransUnion.

“Baby Boomers [72 percent] and Gen X [58 percent] reduced their discretionary spending the most among age groups in the past three months.”

On the topic of future spending, the respondents have indicated that they expect their biggest spending increases in the next three months to be on loans and bills, medical care/services, and retirement funds and investing.

Source: Business Mirror