Filipinos saw their wealth grow in 2023, but the increase wasn’t enough to move the Philippines out of the ranks of poorer economies in the region, according to a new report by Allianz Global.
The insurer reported a 13.2 percent rise in net financial assets per capita, amounting to 1,940 euros (around P121,000) for the year. This places the Philippines at 49th out of 60 economies surveyed in Allianz’s latest “Global Wealth Report.”
Despite the country’s continued classification among the poorer Asian economies, Allianz Global noted that the Philippines was a “growth champion” in the region, surpassing economic giants like China and India. The report attributed this strong performance to the 13.2 percent increase in gross financial assets, the fastest pace in six years.
A key contributor to the rise in financial assets was a 16-percent surge in asset class securities, while bank deposits and insurance assets also showed strong growth, rising by 9.1 percent and 9.8 percent, respectively. However, Allianz Global highlighted that insurance and pensions still only make up 7 percent of Filipino households’ financial portfolios, significantly lower than the 57-percent share in bank deposits.
While wealth increased, liabilities grew as well. Filipinos’ debt rose by 12.9 percent, pushing the debt ratio to 27.1 percent, though Allianz noted this was still relatively low.
“2023 was marked by sharp monetary tightening. But economies proved resilient and markets even boomed,” the report said, highlighting the global trend of strong financial asset growth. Worldwide, household financial assets rose by 7.6 percent, recovering from losses in 2022. In Asia, financial assets grew by 7.5 percent, reaching 63.8 trillion euros.
