^

Business

Pinoys’ wealth rising, but still below Southeast Asia peers – World Bank

Louise Maureen Simeon - The Philippine Star
Pinoysâ wealth rising, but still below Southeast Asia peers â World Bank
Based on the latest The Changing Wealth of Nations 2021 report of the Washington-based multilateral lender, wealth per capita in the Philippines is estimated at $35,135. This is 14 percent higher than the previous level of $30,823.
STAR / File

MANILA, Philippines — Filipinos are seeing a steady increase in wealth over the years but remain below that of their neighbors in Southeast Asia, the World Bank said.

Based on the latest The Changing Wealth of Nations 2021 report of the Washington-based multilateral lender, wealth per capita in the Philippines is estimated at $35,135. This is 14 percent higher than the previous level of $30,823.

The World Bank report tracks the wealth of 146 countries between 1995 and 2018 by measuring the economic value of both renewable and non-renewable natural capital, human capital, produced capital, net foreign assets, and blue natural capital, which was included for the first time.

While global wealth has been growing significantly, this has been accompanied by unsustainable management of some natural assets.

In fact, low and middle income countries like the Philippines saw their forest wealth per capita decline eight percent over the past two decades, reflecting significant deforestation.

Global marine fish stocks also plummeted by 83 percent due to poor management and overfishing, and the impact of climate change may just exacerbate these trends.

“Many countries are on an unsustainable development path because their natural, human or produced capital is being run down in favor of short-term boosts in income or consumption,” the World Bank said.

In Southeast Asia, Singapore topped the rank with wealth per capita at $817,846, followed by Malaysia with $167,365. Thailand came in third with $78,216.

Indonesia and Laos also recorded higher wealth per capita at $78,216 and $38,079, respectively.

Only Vietnam and Cambodia were below the Philippines. Vietnam is already trailing close with $34,084 while Cambodia is still far behind at $18,397. The World Bank did not provide data for Brunei and Myanmar.

Based on the report, low-income countries like the Philippines are expanding their wealth at a relatively slow rate, with per capita wealth growing an average of 22 percent, below the global average of 44 percent.

The World Bank said human capital is the largest source of worldwide wealth, comprising 64 percent of the total.

With the COVID-19 pandemic, the World Bank noted that low-income countries are likely to experience the most severe impact, with a projected loss of 14 percent of total human capital.

The World Bank urged countries to actively invest in public goods like education, health and nature, to prevent unsustainable depletion, and manage future risks.

It also called for policy and pricing measures that help reflect the social value of assets and to steer private investment toward better outcomes. This may include actions such as repurposing fisheries subsidies, and taking action to price carbon and promote renewable energy assets.

WORLD BANK
Philstar
  • Latest
  • Trending
Latest
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

FORGOT PASSWORD?
SIGN IN
or sign in with