Lower-income households in the Philippines experienced a greater reduction in consumption relative to higher income deciles, amid the coronavirus disease 2019 (COVID-19) pandemic.
According to the Asian Development Bank’s (ADB) Key Indicators for Asia and the Pacific 2022, the COVID-19 pandemic has set back the fight against poverty in Asia and the Pacific by at least two years, and many in the region will likely find it harder than before to escape poverty.
According to data included in the report, the overall change in the Philippines’ household consumption per capita from the pre-pandemic year of 2018, to 2021 was a decline of 13.6 percent.
However, the drop was sharper for the bottom 10 percent of households in terms of income decile, recording a 21.1 percent decline.
In comparison, the bottom 10 percent of households in the neighboring country of Indonesia saw an increase in household consumption by 3.3 percent, while for Thailand, it likewise contracted by 1.9 percent.
The top 10 percent of the income decile in the Philippines also saw a contraction in terms of household consumption, but only by 14.8 percent.
Other higher income households saw declines in household consumption that are lower than the average or slightly above the overall figure.
“(The table) hints at the potential shortcomings of the assumption that the pandemic had no impact on inequality. It shows relative changes in household consumption per capita from before the COVID-19 crisis compared to a period since the pandemic began,” the ADB said.
“In some economies, such as Armenia and Georgia, it appears that higher-income households experienced higher proportional reductions in their consumption. On the other hand, in economies such as the Philippines and Thailand, lower-income households experienced greater reductions in consumption relative to higher income deciles,” it added.
The report said the region’s economic growth this year is expected to reduce extreme poverty — defined as living off less than $1.90 a day — to a level that would have been achieved in 2020 had the pandemic not happened.
“The poor and the vulnerable have been hit hardest by COVID-19, and while economies are recovering, many people may find that getting out of poverty is even more difficult than before,” said Albert Park, ADB chief economist.
“Governments in the region should focus on resilience, innovation, and inclusiveness to provide more balanced economic opportunities and greater social mobility for everyone,” he added. – Angela Celis
