Philippines, GDP is skyrocketing but does not scratch inequalities even a bit: the Asian country with the largest income gap

MANILA (AsiaNews) – The international rating agency Standards & Poor’s estimates for the Philippines a 7.1% growth in gross domestic product for the year to the end. It’s a given – you learn from Asianews – which certifies the good performance of the economy, taking into account that the target indicated by the authorities of 6.3%. The Philippine central bank itself reported that – despite high inflation and the necessary increases in the discount rate – the third quarter of 2022 saw a 7.6% increase in GDP. Numbers that have allowed the country to overcome the shallows of the two-year pandemic with momentum, even if – with an elastic effect that will affect a large part of the world – even in the South-East Asian archipelago 2023 will open between lights and shadows, with a more limited growth projection.

One of Asia’s largest income gaps. Macro-economic data, however, very often follow different logics from those of everyday reality. In fact, if the Philippine population, which has reached 110 million inhabitants, has overall seen some improvement in income and quality of life, this average advantage is often canceled out by the persistent inequalities between the different strata of society. After three decades of substantial expansion, the Philippines still has one of the largest income and opportunity gaps in Asia.

Poverty and malnutrition. “The top 1 per cent of the earners own 17 per cent of national income, while the least favored half of the population collectively have only 14 per cent,” the report said. World Bank Overcoming Poverty and Inequality in the Philippines: Past, Present, and Prospects for the Future, which ranks the Philippines 15th out of 63 countries in terms of income gap. The figure is significant, especially considering that overall poverty among the population has decreased: “In 2018, the middle class had expanded to 12 million individuals and the population in conditions of economic security had reached 44 million”. But the least favored sections of society have barely been touched by growth, perpetuating an inequality that in many cases even precedes birth, in the form of undernourishment or poor health of mothers.

Inequality of opportunity. This continuation of a negative situation is thus summarized by Ndiamé Diop, director of World Bank for the Brunei, Malaysia, Philippines and Thailand area: “Inequality of opportunities and low mobility between generations disperse human potential and slow down innovation which is crucial for building a competitive and prosperous economy which can in turn improve welfare and quality of life of Filipinos”.

* Stefano Vecchia, Asianews