Philippines to Remain Among Poorest Countries in SE Asia

The Economic Intelligence Unit stated this past month that the Philippines will remain one of the poorest countries in South East Asia despite a robust economy over the past few years.[*]

The London-based think tank said the Philippine economy would continue to be ‘marked b y wide inequalities of income, and the disparity between the richest and poorest households would stay particularly acute.”

Street UrchinsThe EIU is not only a research and analysis segment they are also well known for their highly anticipated publication “The Economist.”

EIU says that by 2019 “The Philippines will remain one of South East Asia’s poorest economies with a lower level of GDP per head than the majority of the regions other major economies.”

The report also noted that large numbers of Filipinos would continue to live in poverty despite recent economic gains achieved by the Philippines.

It also noted that rural poor would benefit only to the extend that the government directs spending towards improving the quality of essential services – including education, healthcare and transportation.

The group also said the Philippines is a small market, with a GDP per head estimated at only $2,843 (dollars) at market exchange rates and $6,914 (dollars) at purchasing power parity rates in 2014.

The EIU said they only forecast per capital income in the Philippines at $4,549 (dollars) by the year 2019, rising some from the present $2,843 (dollars).

Strong inflows of money from OFW’s (Overseas Foreign Workers), relatively low interest rates and strong job growth have kept consumer expenditures afloat – without it, the entire economy could easily crash.

The group also said that Philippine banks have been moving away from traditional areas of activity – moving instead towards retail financial projects – creating easy loans for housing, cars, debit and credit cards.

Citing 2013 data, 52% of household spending went towards basic necessities such as food. In recent years those number have spiked.

“Although poverty will remain a problem, continuing healthy rates of economic expansion in 2015-2019 will also benefit the poorer segments of the population,” the think tank added.

[*] The original story was published on MSN Money

Jacques Phillip

As an ExPat living in the Philippines. I have found it relatively fun and exciting to have been given the opportunity to live among such wonderful people.

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6 thoughts on “Philippines to Remain Among Poorest Countries in SE Asia

  1. Massive corruption is the main cause why this country still remains poorest in Asia. This country needs a leader who can stop looting of peoples money. If only our government spend money in right manner then for sure there is great improvement.

  2. I don’t believe anyone can stand on the argument of “Corruption” as the lone reason for the plight of the Philippines anymore. While the problem of corruption has been under continous attack from all sides, and it is improving, it is the inability of the government, at all levels, to govern effectively. Period. If they could only begin with simply enforcing the laws (all laws) it has on the books, coupled with fixing a poor and totally unreliable electrical distribution system, it would go a long way towards improving productivity and the lives of the nations peoples. Until then, it will always be a difficult hole to climb out of!

  3. The root of Philippine poverty is something that many people can’t really see and it can never be solved by shouting on the streets. It has rooted from our ignorance being a christian nation. If you have noticed, all nations that embraced Christianity were poor. Look at Brazil, Nicaragua, Mexico and etc. The problem was, we are ignorant about our ignorance. Deception brought by religion is the root of our ignorance! Until we change our mind and belief, we will forever in the cage , which result to poverty in physical reality…

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