Unmoved by the Market: Household Spending vs. Economic Trend

Despite substantial fluctuations in key economic indicators, household final consumption expenditure (HFCE) in the Philippines has generally increased over time. As seen in the plot, while labor force participation continues to fall and the consumer price index stays essentially steady, GDP per capita, gross capital formation, and net factor income from overseas all not only exhibit upward growth but also strong post-2020 recoveries after a dip during the 2019–2020 timeframe, which may be attributed to the COVID-19 pandemic. Government spending also showed an upward trend, resembling HFCE closely.

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Related SDG

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Section

WFX Autumn

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Authors

C. A. Avena

K. Rodrigo

D. Yap

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EXTERNAL LINKS

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Despite substantial fluctuations in key economic indicators, household final consumption expenditure (HFCE) in the Philippines has generally increased over time. As seen in the plot, while labor force participation continues to fall and the consumer price index stays essentially steady, GDP per capita, gross capital formation, and net factor income from overseas all not only exhibit upward growth but also strong post-2020 recoveries after a dip during the 2019–2020 timeframe, which may be attributed to the COVID-19 pandemic. Government spending also showed an upward trend, resembling HFCE closely.