Household Income and Expenditure Survey Analysis Report

2005 Household Income and Expenditure Survey Report4. Conclusions4.1. SummaryIncome and Expenditure patterns of FSM households in 2005 varied among the states. There is alsoevidences of change between 1998 and 2005. The summary of these changes and variations are as follows:Income• Overall total household income was $220 million in 2005. For each state the total income wasestimated to be $94 million (43%) for Pohnpei, $77 million (35%) for Chuuk, $34 million (16%)for Yap, and $15 million (7%) for Kosrae.• The major source of household income was Wages & salaries, contributing $104 million (47%) tothe total income of the entire country. Other significant contributing sources were SubsistenceActivities with $39 million (18%), Imputed Rent of House with $23 million (10%), and Own farmor business at $20 million (9%) of total expenditures.• Average household income was estimated at about $13,400. The average household income bystate is as follows: about $15,600 for Yap and Pohnpei, $12,800 for Kosrae, and $10,900 forChuuk.• Average households vary by quintile group, household type (householder characteristics). Averagehousehold income for 1 st Quintiles was about $3,600, significantly lower than that of 4 th quintile($14,500) and 5 th quintile ($32,200). Female-headed household average income was $11 thousand,about $3 thousand less than male-headed households. The average household income of non-FSMethnic households was estimated at $20,300 compared to $13,100 for FSM ethnic households.• Median income was estimated to be $12,300. The median is lower than the average in all thestates. The difference between the median and average household income was highest in Pohnpei($5,000) and lowest in Kosrae ($2,300).• Per-capita income per person was estimated to be $1,983. By state it was $2,930 in Yap; $1,683 inChuuk; $2,093 in Pohnpei; and $1,695 in Kosrae.Expenditure• The total FSM household expenditure was $211 million in 2005. Total expenditure by state was$78 million in Pohnpei, $80 million in Chuuk, $39 million in Yap and $14 million in Kosrae.• Total expenditure on food and housing were the largest at $83 million (39% of total expenditures)and $37 million (18%), respectively. Total household expenditure was lowest on Medical care,Recreation (each about $4 million or 2% of total expenditures) and Education (about half a milliondollars).• The estimated average annual spending of one household was $13,000. Average annual householdexpenditure was higher in the four groups: Food, ($5,100), Housing ($2,200), Transportation &communication ($1,700) and Gifts ($1,500).• Average annual expenditure of female-headed households was $11,200 about $2,000 less than thatof male households.• Per-capita expenditure was $2,900 for all households.Savings/Dissavings• Overall, households incurred an average saving of $592. Pohnpei and Kosrae registered savings of$2,658 and $1,064 respectively. Households in Yap and Chuuk recorded dissavings of $2,024 and$443 respectively.• Nationally, households with income below $15,000 incurred dissavings. About 72% of FSMhouseholds have income below this level.Division of Statistics,Office of Statistics, Budget & Economic Management, Overseas Development Assistance and Compact Management 17