NSCB Releases Supplementary Notes on the 2003 Poverty Estimates
(PR-200501-SS1-01, Posted 22 February 2005)

In response to the various questions raised regarding the validity of the latest poverty figures, the NSCB released a brief report on the 2003 poverty estimates, which deals specifically with: (1) the seeming inconsistency between the trends in the poverty statistics of the NSCB and the results of the Family Income and Expenditures Survey (FIES) of the National Statistics Office (NSO); and (2) the inconsistency between the trends in poverty incidence and the gross regional domestic product (GRDP) also being released by the NSCB. It was shown that the reasons for the perceived inconsistencies lie on the following:

1. looking only at the overall average income instead of looking at the income of the lower income groups;

2. use of an inappropriate deflator to express income in real terms;

3. use of family income instead of per capita income as indicator for analyzing poverty; and

4. inadequate understanding of what GRDP really is and its coverage.

For these notes, inquiries may be made with Ms. Redencion M. Ignacio or
Ms. Glenita V. Amoranto at telefax number (632) 896-7981 or at their
e-mail addresses rm.ignacio@nscb.gov.ph / gv.amoranto@nscb.gov.ph.

Explanatory Notes on the 2003 Poverty Estimates