Philippines’ Per Capita Income Hits $2,000

[Old55]

THE Philippines last year joined Asia’s emerging markets with an expanding middle class after it posted a per-capita gross domestic product of more than $2,000, according to economists. A turning point

[Dave Hounddriver]

Bank of the Philippines Islands president Aurelio Montinola III said the $2,000 per-capita threshold was crucial for any developing economy. Reaching it marked a turning point for countries such as Thailand in growing their consumer market with a capacity to buy cars and houses.

I find this thoroughly confusing. Are they talking an income of US$2,000 per person per month or PHP2,000 per year or some other figure. My best guess is US$2,000 per person per YEAR which does not go a long way to buying cars and houses. If they really mean per month then I surely do not see any local people with that kind of income.

[ekimswish]

Bank of the Philippines Islands president Aurelio Montinola III said the $2,000 per-capita threshold was crucial for any developing economy. Reaching it marked a turning point for countries such as Thailand in growing their consumer market with a capacity to buy cars and houses.

I find this thoroughly confusing. Are they talking an income of US$2,000 per person per month or PHP2,000 per year or some other figure. My best guess is US$2,000 per person per YEAR which does not go a long way to buying cars and houses. If they really mean per month then I surely do not see any local people with that kind of income.

They mean US$2000 per person per year. It's significant in that most people make less if not far less than that, which means a significant number of people are probably making up to $6000 per year to cover the difference. In the Philippines, that's a pretty decent income which can be spent on consumer products, raising other people's incomes. It ain't a lot, but it's a start. If you consider that between a married couple in the countryside, the husband might make 3,000pesos a month ($70?), and the wife might make nothing, that's $420 per person per year. That means someone else is making $3580 a year. So for every poor couple in the countryside or city, and there are millions, there are millions of people living more and more comfortably as well, making it easier for them to start developing this country better in every facet of life, probably most of all politically. A strong middleclass is vital to a healthy democracy. Until now, the Philippines' middle class has been their number one export, along with any hope of political accountability. If that $2000 per capita average can keep in the upward swing, there could be hope for this country yet.

[Jake]

Bank of the Philippines Islands president Aurelio Montinola III said the $2,000 per-capita threshold was crucial for any developing economy. Reaching it marked a turning point for countries such as Thailand in growing their consumer market with a capacity to buy cars and houses.

I find this thoroughly confusing. Are they talking an income of US$2,000 per person per month or PHP2,000 per year or some other figure. My best guess is US$2,000 per person per YEAR which does not go a long way to buying cars and houses. If they really mean per month then I surely do not see any local people with that kind of income.

Hey Dave,Your assumption is correct: $2000 per person, per year. "Per Capita" is defined here: http://www.enotes.co...r-capita-incomeThat's about $166 per month or a little over 7,000 pesos per month.Respectfully -- Jake