Filipinos' spending on food and pampering power growth
MANILA, Philippines - The Sambayanan Water Refilling Station in Smokey Mountain has been around for nearly a decade. 2012 was their best year yet.
The manager says monthly water sales picked up by 12.5%. They went from selling around 4,000 gallons of water a month in 2011 to 4,500 in 2012.
Myriam Carpio keeps the logs and says her wages have increased.
She spends the additional money on more food for her daughter and 3 grandkids.
With the additional money, I buy food, rice, and everything else I need.
WATER STATION COORDINATOR
Filipinos like Myriam, who are making more and spending more, power the economy.
Consumer spending drove the economy up to an incredible 6.6% growth in 2012.
Household spending made up 4.3 percentage points of that growth or about 65%.
Filipinos spent the most on food. Their next biggest expenditures went towards pampering themselves. Filipinos spent 10.5% more annually on restaurants, 10.9% more on recreation and 11.7% more on health.
The fact that demand for [these items] and expenditures increased dramatically really means that there were increasing incomes.
NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY
The Philippines is now one of the fastest growing economies in the region.
But government economists say risks remain, like the strengthening peso.
The appreciating peso shrinks the value of remittances, which only grew 3.3% in 2012 based on constant prices.
Still economists are optimistic about 2013.
After easily beating its 5% to 6% 2012 target, the government is optimistic and targeting 6% to 7% growth in 2013.
Socioeconomic Planning Secretary Arsenio Balisacan says that recipe for success will be massive private sector investments plus big ticket government road and rail projects, which are currently backlogged.
Sari-sari store owner Rosalinda Nojo agrees. 2012 was good but she wants 2013 to be better.
She says she earned between P120 and 150 a day in 2011 and that shot up to about P150 to 300 a day in 2012.
President Aquino has done a lot of good work. It helps that he’s not corrupt.
SARI-SARI STORE OWNER
It's impossible to say for sure what 2013 will bring but Filipinos have good reason to believe it will be better. - Rappler.com