This was disclosed by Winston Padojinog, senior economist of the University of the Asia and the Pacific during a press conference dubbed "Economic Outlook" last week.His
report showed that one percent of the increase in regional output increases average household income by 1.44 percent.
summary of impact of a household income contraction on Iloilo consumption behavior, Padojinog
reported that non-durable furnishings consumption were highest with .58 percent, higher than consumption of food with .07 percent and tobacco with .08.
It was found out that .41 percent of household income goes to educational fees, next higher to consumption of non-durable furnishings.
Clothing and footwear consumption, durable furnishings and house maintenance and repairs were higher than that of food with .23, .24, and .23 percent.Padojinog
advised that lifestyles should change by eliminating consumption to unnecessary and luxury goods; shift usage of the modern but more efficient durable goods; and consider substituting more expensive goods with the less expensive ones, which also provide the same level of utility. He
also added that those who have more must share with those who have less.He
advised firms to improve productivity by increasing firm productivity by solving to reduce cost, increase value and perhaps to consider exporting or generating foreign exchange abroad. He
added that producers should let the market determine how the economic agents will react to the price environment.
"It has been proven in the past crisis that the players in the economy are forced to become more efficient in the use of the resources; highly creative in coming up with new technologies to deal with the problem; and more philantrophic," he
Having admitted that there was price crisis in Western Visayas, Padojinog
stated that the economy of the region will slow down from 6.0 percent to 5.3 percent this year, thus it is necessary to be economically wise.