Economic Indicators that should be important to us

There are some facts known as economic indicators which should be important to those who want to keep track of what is happening in our economy.

In today's column I'll mention three: family income, per capita poverty threshold and poverty incidence.

Statistics on these indicators are gathered by the National Statistics Office. The most recent data are for year 2000.

For the Eastern Visayas Region average family income was P91,520 which roughly amounts to P7,100 a month.

It is noted that this is about “family” income. It already includes income by all the family members – which could include both husband and wife and three children. (the average family size is 5)

Per capita poverty threshold, refers to the minimum income needed to support an individual's needs for one year (this is a general estimate for all ages – from babies to adults).

This was computed to be P9,623.

For the average family with 5 members (husband, wife, and three children) this would mean that the family must earn around P48,000 a year to meet their basic needs for food, clothing, shelter, medicine, and education.

With this threshold, the region had a poverty incidence of 37.8% - meaning about one-third of the families did not earn P48,000 a year.

Quite telling statistics. Not really one that we can be proud of. But something that should keep our government challenged.

To keep poverty incidence low, family incomes must increase.

Targeting income increases with tangible results is what the next administration must focus on. If it cannot improve this indicator, the number of poor families who cannot afford to satisfy their basic needs will continue to increase.