Not only are most workers experiencing low wage increases, but following the resources boom some people have moved out of highly paid jobs. The result is that after many years of Australians experiencing strong growth in real incomes, growth in average nominal and real incomes has been much slower over recent times.
In emerging Asia, consumption contributed 4.25% and investment 2.75% to growth last year. The Philippine experience certainly reflects this. The shift in focus to stimulating domestic demand has certainly made emerging markets more resilient than advanced economies. This is not to say, however, that we should be complacent. Markets can turn quickly and difficulties can be protracted.