2000 Family Income and Expenditures Survey Final Results

Reference Number: 

2002-NN

Release Date: 

Wednesday, January 9, 2002

 

FAMILY INCOME

  • Total family income for the year 2000 was estimated at P2.2 trillion, up by 25.7 percent over the P1.7 trillion in 1997. This translates to an average annual increase of 8.4 percent.

  • Meanwhile, the country's inflation rate from 1997 to 2000 based from the Consumer Price Index (Philippines, all items) was estimated at 22.0 percent or an average annual rate of 6.9 percent.

  • Adjusted for the 22.0 percent inflation measured from 1997 to 2000, total family income grew by 2.5 percent or an average annual increase of 0.8 percent.

 

 

FAMILY EXPENDITURES

  • Total family expenditures reached P1.8 trillion higher by 26.8 percent over the P1.4 trillion level in 1997. On an annual basis, this growth averages to 8.9 percent.

  • Net of inflation, total family expenditures went up by 4.5 percent from 1997 to 2000 or an average of 1.5 percent annually.

 

INCOME BY REGION

  • The inflation-adjusted estimates indicate an improvement of income at the national level. However, by region, only 8 in 16 regions experienced growth in real income with Southern Mindanao having the highest growth at 17.2 percent.

  • The other region with double-digit growth posted in real family income was Southern Tagalog with 16.6 percent.

  • There were also real income gains in Cordillera Administrative Region (8.8%), Eastern Visayas (8.5%), Central Mindanao (8.0%), Bicol (5.5%), Western Visayas (2.0%), the National Capital Region (0.4%), and Ilocos (0.2%) .

  • However, real incomes of families in eight regions declined with Western Mindanao and Autonomous Region in Muslim Mindanao experiencing the biggest decline of 11.5 and 9.8 percent, respectively.

  • Other regions with declines in real income include Northern Mindanao (-7.8%), Bicol (-7.6%), Caraga (-5.4%), Central Visayas (-3.5%), Cagayan Valley (-2.2%), and Central Luzon (-1.6%).

 

AVERAGE FAMILY INCOME

  • Average family income reached P145,121 in year 2000, increasing by 17.8 percent over the P123,168 in 1997. Inflation adjusted estimates indicate a decrease of 3.5 percent.

  • In terms of growth of average family income at current prices over that of the 1997, Eastern Visayas had the highest increase of 35.0 percent, followed by Western Visayas (26.3%), Cordillera Administrative Region (24.3%), Cagayan Valley (24.9%) and Southern Tagalog (22.4%).

  • Net of inflation, Eastern Visayas still led the others with an increase of 10.6 percent, followed by Western Visayas (5.1%), Cordillera Administrative Region (2.5%), Cagayan Valley (1.3%) and Southern Mindanao (1.1%).

  • However, Autonomous Region in Muslim Mindanao registered the biggest loss of 18.5 percent, after adjusting for inflation. Other regions which experienced big declines, included Western Mindanao (-18.4%), Northern Mindanao (-9.2%), Central Visayas (-8.7%) and National Capital Region (-8.6%).

 

INCOME DECILE

  • The income distribution in both current and real prices showed a slightly favorable shift towards the fourth, fifth, sixth, seventh, eighth and ninth decile. The share in income in these deciles increased by at least 0.1 percent. The share of the tenth decile, however, decreased from 39.3 percent in 1997 to 38.3 percent in 2000.

  • In 1997, nominal income earned by the tenth decile was about 23.4 times higher than that of the first decile. In 2000, this was about 22.7 times higher.

 

SAVING

  • Total saving (Income net of expenditures) at current prices was measured at P396.1 billion in 2000, up by 18.1 percent from P335.4 billion in 1997. Net of inflation, this was equivalent to P324.7 billion, down by 3.2 percent over the same period. Both sets of estimates in 2000 showed dissaving for the first two deciles, similar in 1997.

     

AVERAGE SAVING

  • Average saving at current prices reached P26,282 for an increase of 11.2 percent from the P21,543 in 1997. Net of inflation, this was P21,342 for a decrease of 8.8 percent over the same period.

  • However, all regions, on the average, earned more than they spent, whether measured in current or inflation-adjusted prices. National Capital Region recorded the highest average saving of P46,219 followed by Central Luzon at P25,754, Cordillera Administrative Region at P24,134, Southern Tagalog at P21,868, Northern Mindanao at P21,176 and Ilocos Region at P20,592.

 

INCOME EQUALITY

  • The resulting Gini coefficient was 0.4822 in 2000, down by 1.0 percent from 0.4872. A lower Gini coefficient indicates a movement towards a more equal or less unequal income distribution.

  • However, increases in the coefficient or a movement towards a widening income disparity was observed in regions like Eastern Visayas, Western Visayas, Southern Mindanao, Bicol and Cagayan Valley.

  • Autonomous Region in Muslim Mindanao recorded the smallest coefficient of 0.3220, implying the least unequal distribution of income among families.

     

PATTERN OF EXPENDITURES

  • The expenditure pattern continues to change towards lesser spending on food, particularly those consumed at home.

  • The share of food expenditures to total expenditures decreased from 44.2 percent in 1997 to 43.6 percent in 2000. Food consumed at home had a share of 38.6 percent, down from 39.5 percent in 1997 while food consumed outside the home increased from 4.7 percent to 5.0 percent in 2000.

  • Expenditure groups which had larger shares in 2000 were rent/rental value of dwelling unit, transportation and communication, fuel, light and water, education, personal care and effects, clothing, footwear and other wear, and durable furniture and equipment.

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