Filipinos are big spenders

February 5, 2008  --  Got something to say?
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MANILA Filipino households spent more than what they earned in 2006, according to the National Statistics Office (NSO).

In its 2006 Family Income and Expenditure Survey (FIES), NSO said total annual income among the estimated 17.4 million Filipino families in 2006 resulted in an average annual family income of about P173,000. This was higher by 16.4 percent than the P148,616 recorded during the 2003 survey.

But the trouble is that while Filipino families earned a total of P3.01 trillion in 2006, their expenditure exceeded what they earned in that year.

The total annual family expenditure was about P2.56 trillion, or P147,000 for every family on the average, up by 18.8 percent from P124,377 in 2003.

NSO said the spending pattern of Filipino families particularly among those in the bottom 30-percent income group changed in 2006. The bottom 30 percent of the families spent more on food.

In 2006, 59 percent of all expenditures by this group went to food, compared to 48 percent in 2003. This means that for every P100 that it spent, P59 went to food, compared to only P48 in 2003.

Consequently, there was a decrease in the shares of other expenditure items such as house rent or rental value (12.7 percent to 9 percent), transportation and communication (6.1 percent to 3.8 percent) and education (2.9 percent to 1.3 percent).

NSO said the total family income of the 10th decile of families, or the richest 10 percent, was estimated at P1.08 trillion, which is 36 percent of the total family income in 2006. This is slightly lower than these families? share of 36.3 percent or P0.88 trillion in 2003.

A narrowing of the gap between the 10th and first deciles was seen in 2006.
The total family income of the 10th decile in 2006 was about 19 times that of the first decile, while it was 20 times that of the first decile in 2003.

NSO said income decile is the distribution of families into 10 groups In terms of annual family income. The first decile has the lowest income and 10th decile, the highest.

Its 2006 survey also provides estimates of family income and family expenditure at the regional level.
Across regions, Metro Manila recorded the biggest share of the total annual family income, with P734 billion or about one-fourth of the total annual family income for the entire country. The Autonomous Region in Muslim Mindanao (ARMM) had the smallest share with 1.6 percent or P47 billion.

All regions showed increases in average annual income between 2003 and 2006 at current prices.
The top four regions in terms of average income, posting estimates higher than the national average at the National Capital Region, or Metro Manila with P311,000; Cavite-Laguna-Batangas-Rizal and Quezon, or Calabarzon P210,000; Central Luzon P198,000; and Cordillera Administrative Region, or CAR P192,000.
Adjusting for the inflation between 2003 and 2006, the annual average income of Metro Manila families would be valued at P253,000, Calabarzon at P175,000, Central Luzon at P163,000 and CAR at P158,000.
ARMM registered the lowest average annual income among regions (P89,000 at current prices).

The Gini coefficient or the measure of income equality within a population was estimated at 0.4580 in 2006. This figure is slightly lower than the 2003 ratio of 0.4605. A Gini coefficient ranges from 0 to 1, with 0 indicating perfect income equality among families, and 1 indicating absolute income inequality.
The Family Income and Expenditure Survey is a nationwide survey of households undertaken every three years by NSO. It is the main source of data on family income and expenditure, such as levels of consumption by item of expenditure as well as sources of income in cash and in kind.


Posted by News Team | Filed Under Philippine News 

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