The economic condition of Filipino families generally improved along with the country's economic growth last year with income distribution among families more equitable than in 2003, initial results of the 2006 Family Income and Expenditure Survey show.

The survey's preliminary results released recently by the National Statistics Office indicated that from 2003 to 2006, average nominal income of families in the bottom 30 percent grew faster at 17.5 percent compared to families in the upper 70 percent which grew by only 15.9 percent.

Income growth among the lower income groups was also higher than the national average income growth of 16.2 percent. But families from the bottom 30 percent posted negative savings due to higher spending.

The FIES further showed that total family income also increased by 22.8 percent from the 2003 figure, reaching P2.99 trillion in 2006.

Total family expenditure expanded as well by 25.8 percent as families spent more on fuel, light and water, transportation and communications and medical care.

In general, the FIES survey showed that there was a decline in the share of food expenses to total expenditures among families with the bottom 30 percent having a higher expenditure share of 59.1 percent compared to the upper 70 percent's 39.3 percent.

Socio-Economic Planning Secretary Augusto Santos said while gains in macroeconomic reforms may have been felt at the family level, there remains a need to accelerate the pace of growth to produce significant income gains within the lower income brackets.

To achieve these, “the government must push for policies to sustain macroeconomic stability, modernize agriculture, strengthen small enterprises and expand export markets in order to create employment opportunities,” he said.*

back to top