Philippines to boost subsidies
Roel Landingin in Manila | Sunday, 1 June 2008
MANILA has said it will increase subsidies to help poor households cope with rising food and energy prices as soaring inflation and slowing economic growth take their toll on the country.
The move came last Thursday as the Philippine government said the country's gross domestic product (GDP) in the first quarter rose by only 5.2 per cent from a year ago, slowing from 6.4 per cent in fourth quarter.
The combination of slower economic growth and soaring inflation, which almost tripled to 8.3 per cent in April from a 2007 average of 2.9 per cent, is worrying Manila's policymakers who are concerned it could expand the ranks of the poor who already make up a third of the 88.6m Filipinos.
Fuel prices have risen 14 per cent this year and food prices have risen steadily each week, causing widespread discontent.
About 40 per cent of Filipino households said they do not earn enough for their food needs, according to a recent survey by the polling group Social Weather Stations.
"Our analysis shows that a family of five or more earning 10,000 pesos ($229, euro147,
The move came last Thursday as the Philippine government said the country's gross domestic product (GDP) in the first quarter rose by only 5.2 per cent from a year ago, slowing from 6.4 per cent in fourth quarter.
The combination of slower economic growth and soaring inflation, which almost tripled to 8.3 per cent in April from a 2007 average of 2.9 per cent, is worrying Manila's policymakers who are concerned it could expand the ranks of the poor who already make up a third of the 88.6m Filipinos.
Fuel prices have risen 14 per cent this year and food prices have risen steadily each week, causing widespread discontent.
About 40 per cent of Filipino households said they do not earn enough for their food needs, according to a recent survey by the polling group Social Weather Stations.
"Our analysis shows that a family of five or more earning 10,000 pesos ($229, euro147,