th images menu user export search eye clock list list2 arrow-left untitled twitter facebook googleplus instagram cross photos entrep-logo-svg

How Much is the Typical Filipino's Net Worth?

It's quadrupled since 2000, but disparity with regional and world averages remains large
By Lorenzo Kyle Subido |

 

On average, a Filipino adult has a net worth of $9,878 in 2016, according to Credit Suisse’s Global Wealth Databook 2016. That is 3.6 times the level at the start of the millennium when a Filipino adult owned only $2,768 on average.

 

While the growth rate may look impressive, one must take into account the almost two-decade long period. Annually, the mean growth rate amounts to less than 10 percent, which is unadjusted for the effects of consumer price inflation.

 

The disparity between the mean wealth of Filipino adults and their counterparts in the Asia-Pacific region and the world remains large. As of last year, the country's average wealth of $9,878 is only 21.3 percent of the Asia-Pacific average of $46,325, and 18.7 percent of the global average of $52,819.

 

To be sure, those figures are better compared to 16 years ago when the mean wealth of Filipino adults amounted to only $2,768 — less than a tenth of both the regional and global average.

 

Related link: How Many Filipinos Have a MIllion Dollars? A Swiss Bank Tries to Count 

 

However, the narrowing of the wealth gap is due to a slow down in the pace of growth in average wealth in the Asia-Pacific and the world.  The mean wealth held by adults rose by only 37 percent in the region and 67 percent globally.

 

In contrast, Filipinos' average wealth rose by 257 percent over the same period. The Philippines could have grown faster still if it adopted economic policies that promoted more equitable economic growth such as the ones implemented by Indonesia, a low-income country whose average wealth rose by 331 percent between 2000 and 2016.

 

But there seems to be an undesirable aspect of wealth trends in the Philippines. Along with rising average wealth, inequality also seems to be trending up. A possible indication is the widening disparity between the average wealth and median wealth of Filipino adults. While their average wealth amounted to $9,878 last year, their median wealth was only $2,055, equivalent to a difference of 79.2 percent. That gap has steadily risen since 2008 when it fell to a low of only 72.6 percent.

 

(The following example explains the difference between median and average, which could be distorted by a single or few unusually large numbers. Given a group of three jobless people who don't earn any monthly salary, then their average pay is zero. But add just one person whose earnings is Php200,000 and the group's mean pay suddenly goes up to Php50,000. In contrast, the group's median pay is still zero despite the addition of the highly paid person. That's because median, another statistical measure of central tendency, is based on the quantity lying at the midpoint of a range of values, and is unaffected by extremely high or low numbers, unlike the average.)

ADVERTISEMENT - CONTINUE READING BELOW

 

In putting together the report, Credit Suisse compiled data from household balance sheets and other sources of wealth distribution data. The report includes data from over 200 countries and spans all income levels.

 

 

 

-----

 

Lorenzo Kyle Subido is a staff writer of Entrepreneur PH 

Latest Articles

The Surprising Second Act for One of YouTube's Biggest Stars

Connor Franta has begun planning for a life after YouTube -- building a business that, one day, he...

byLaurie Sandell | September 21, 2017 09:00:00

The 4 Skills Needed to Make a Great Impression

Check out the research behind the first few seconds of meeting someone and how to make a great and...

byVanessa Van Edwards | September 21, 2017 07:00:00

The iPhone of Drones Is Being Built by This Teenager

With the millions he's raised, his flagship product might become one of the most game-changing...

byJesse Hyde | September 21, 2017 06:00:00

Pinoy Kids Need Not Worry: It's Business as Usual for Toys "R" Us

Local franchise holder assures all 34 standalone branches and 44 toy box outlets are open ahead of...

byElyssa Christine Lopez | September 20, 2017 18:00:00

How Much is the Typical Filipino’s Budget for Buying a House?

Real estate portal Property24 profiles the typical Filipino property buyer

byLorenzo Kyle Subido | September 20, 2017 10:00:00

(Video) Meet the Business Owner Who Caused a Z Movie-Like Stampede for the Php8 Zark’s Burgers

Why thousands of customers risked hurting themselves for a burger sandwich

byEntrepreneur Staff | September 20, 2017 10:00:00

What Has JAZA Got To Do With the UN’s Sustainable Development Goals?

Ayala Corp. chairman recognized as pioneer in crafting business strategy and operations around 17...

byElyssa Christine Lopez | September 20, 2017 09:00:00

The Luxuries People Can't Live Without (Infographic)

A recent study found that more people would give up Spotify for Netflix.

byRose Leadem | September 20, 2017 08:00:00

The 3-Step Approach for Testing Out Your Business Idea

Here's how to learn the most from your potential customers and get honest feedback

byVanessa Van Edwards | September 20, 2017 04:00:00

How 6 Business Titans Created a Thriving Team

As the host of podcast Masters of Scale, Reid Hoffman asks everyone from Mark Zuckerberg to Sara...

byEntrepreneur US Staff | September 20, 2017 02:00:00

Financial Adviser: 5 Ways to Make Money from Freelance Consulting Without Losing Your Day Job

Long experience and deep knowledge in a field are key ingredients of a consulting career

byHenry Ong | September 19, 2017 12:00:00

Ex-BlackBerry PH Manager Raises Php32-M for Online Store Selling Electronic Gadgets

Poundit wants to be the top-of-mind for consumer tech products in the country

byLorenzo Kyle Subido | September 19, 2017 11:00:00