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Tuesday, October 04, 2005
Fixed income earners most hit in crisis: economist
By Lory Ann B. Bilbao
SENIOR Economist of The University of Asia and the Pacific, Winston Padojinog, said, "Salaried or fixed income earners will be the most adversely affected in an inflationary environment like ours."
Padojinog, in his report, showed that 44.37 percent in Western Visayas were relying on wages or salaries while only 28.41 percent rely on entrepreneurial activities and 27.22 percent on other job.
In an economic briefing here, Padojinog said that while Western Visayas' services sector and industry bloom than the agricultural sector, no one can escape the painful crack of increase in prices of both food and non-food among consumers.
While Padojinog admitted that there will be an economic slowdown from 6.0 percent of economic growth before the crisis to 5.3 percent growth after the crisis this year, a total of 0.70 percent growth reduction was deduced to affect much the growing services sector both in Western Visayas and especially in Iloilo City.
Padojinog estimated a total of 0.20 percent reduction in Agricultural growth in Western Visayas, 0.0 percent in Iloilo City, as it is not an agricultural area.
In industry growth, he reported 0.18 percent growth reduction in Western Visayas and 0.14 percent in Iloilo City while services sector growth reduction marked the highest with 0.32 percent in Western Visayas and huge 0.56 percent in Iloilo City.
There will be those that will not feel the pinch, though," he said.
He stated that while peso dropped to its lowest of lows, dependents of overseas workers such as Overseas Foreign Workers (OFWs) will most likely feel calloused over price hikes.
In his report he showed that Western Visayas among regions 7, 10, 11 and Armm, which are economies performing well outside Luzon, has reportedly highest percent share among OFWs dependent.
About 8.89 OFW dependent percent share was reported in Western Visayas for 2004 and 5.41 percent of which is of dependents in Iloilo Province while that of the whole country is 11.1 percent.
"Families relying on overseas remittances are a growing segment of the household population, "he said.
Padojinog maintained that it is still best to be wise in these economic depressing times.
(October 4, 2005 issue)
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