The Impact of

economy status and

high inflation rates in
the Philippines to
Filipino people.
INTRODUCTION

In its World Economic Situation and Prospects 2019 report, the

UN said it sees the Philippines' gross domestic product (GDP)
growth to have had slowed to 6.3% in 2018 from 6.7 % in 2017. ...
In 2019 and 2020, the UN projected the Philippines' GDP growth
at 6.5% and 6.4% respectively.

It targets 6.5-6.9% growth for 2018, even as actual GDP

expansion averaged 6.3% during the first three quarters.

“In the Philippines, GDP growth in 2018 was affected by a

slowdown in household spending due to a rapid increase in
inflation,” the UN said.

Last year, inflation or the rate of increase in prices of basic

commodities hit a 10-year high of 5.2% due to new or higher
excise taxes slapped on consumption, skyrocketing global oil
prices during the third quarter, as well as domestic food supply
bottlenecks that pushed prices higher, especially of rice.

Many people don’t understand why most Filipino people chose to

work abroad rather than stay here in their homeland. I want to
conduct this research and explain the number 1 reason why
Filipino chose to work outside the Philippines, and number one is
due to bad economy standing and high inflation rates.
Data Collection

September survey results also showed that "Filipinos continue to be most concerned
about economic matters."

Asked which among 15 urgent national concerns they want the Duterte
administration to immediately address, 63% or a sizeable majority of Filipinos cited
inflation – 12 percentage points higher than in June.

This is followed by increasing workers' pay (50%), poverty reduction (32%), job
creation (30%), fighting graft and corruption in government (26%), fighting crime
(23%), promoting peace (14%), protecting the environment (13%), reducing tax
payments (12%), and enforcing the rule of law (11%).

Filipinos deemed as least urgent government action on the welfare of OFWs (6%),
rapid population growth (6%), terrorism (5%), national territorial integrity (5%), and
charter change (3%).

At the time the survey was held, and between the June and September polls, among
the dominant news were inflation or the increase in the prices of goods hitting a 9-
year high in August, the rice shortage, calls to sack then-National Food Authority
administrator Jason Aquino, and the weakening of the Philippine peso.

Non-economic news included Duterte's Proclamation No. 572 voiding the amnesty
granted to opposition Senator Antonio Trillanes IV, and the bombings in Isulan,
Sultan Kudarat, that led some to raise the possible extension of martial law in
Mindanao beyond December 31, 2018.

My method of gathering data is Sample Data Collection

Sample data collection, which is commonly just referred to as sampling, is a method

which collects data from only a chosen portion of the population. Sampling assumes
that the portion that is chosen to be sampled is a good estimate of the entire
population. Thus one can save resources and time by only collecting data from a
small part of the population. But this raises the question of whether sampling is
accurate or not. The answer is that for the most part, sampling is approximately
accurate. This is only true if you choose your sample carefully to be able to closely
approximate what the true population consists of. Sampling is used commonly in
everyday life, for example, all the different research polls that are conducted before
elections. Pollsters don't ask all the people in a given state who they'll vote for, but
they choose a small sample and assume that these people represent how the entire
population of the state is likely to vote. History has shown that these polls are almost
always close to accuracy, and as such sampling is a very powerful tool in statistics.
Data organization and Presentation

INFLATION RATES ACCORDING TO MY RESEARCH

Cost of living in the Philippines according to survey

180,000

160,000

140,000

120,000

100,000 Income
Cost of living
80,000
Savings
60,000

40,000

20,000

0
Upper class 1 Middle class 2 Lower Class 3
DATA ANALYSIS AND INTERPRETATION

8 out of 10 filipino tells me that the reason why they chose to work abroad is because of
bad economy status, and high inflation rates. I also classify the population into three
groups. I also used some surveys from the internet to help me gather more data from
my research. And since I’m surrounded by OFW’s I took it as a opportunity to make an
interview personally.

UPPER CLASS = MIDDLE CLASS= LOWER CLASS

180,000

160,000

140,000

120,000

100,000 Income
Cost of living
80,000
Savings
60,000

40,000

20,000

0
Upper class 1 Middle class 2 Lower Class 3

If you are earning 160,000 above then you’re part of the UPPER CLASS, but if your
earning below than that you’re part of the MIDDLE CLASS and when you’re earning
lower than 36,000 you are part of the LOWER CLASS.

Because members of high upper class tend to be better educated and have higher
incomes, they are more able to provide educational advantages to their children as
well. Educational inequality is one factor that perpetuates the class divide across
generations. Unlike from middle class and lower class the opportunity is very limited. So
instead of staying here and settle with low earnings they chose to work abroad.
Because they cant survive and provide the needs of their family. Especially with high
inflation rates and the high standard of cost of living.