Philippines Table of Contents

From Wikipedia, the free encyclopedia

Economy of the Philippines

Economy of Philippines

Skyline of Metro Manila

Currency

Philippine peso (PHP) = 100 centavos (English) piso = 100 sentimo (Filipino)

Fiscal year

Calendar year

Trade organizations

APEC, ASEAN, WTO, EAS, Asian Development Bank, ASEAN Plus Three, and others

Statistics

GDP

$257 billion nominal(2012)[1] $424.355 billion PPP (2012)[2]

GDP growth

6.6% (2012)[3]

GDP per capita

$2,614 (2012)[4] (nominal 126th) $4,430 (2012)[4] (PPP 126th)

GDP by sector agriculture (12.3%), industry (33.3%), services (54.4%) (2011 est.)[5]

Inflation (CPI)

3.4% (February 2013)[6]

Population

national 22.9% (2006 est.)[5]

below poverty international 22.6% (2006)[7] line regional 27% (2006)[8]

Gini coefficient 43.0 (2009)[9]

Labor force

59.81 million (2011 est.)[5]

Labor force by occupation

services (52%) agriculture (33%), industry (15%) (2010 est.)[5]

Unemployment 6.8% (October 2012)[10]

Main industries electronics assembly, Business Process Outsourcing, garments,footwear, pharmaceuticals, chemicals,wood products, food processing,petroleum refining, fishing[5]

Ease of Doing Business Rank

136th of 183 countries ranked[11]

External

Exports

$52 billion (2012)[12]

Export goods

semiconductors and electronic products, transport equipment,garments, copper products, petroleum products, coconut oil, fruits[5]

Main export partners

Japan 18.5%, United States 14.8%,China 12.7%, Singapore 8.9%, Hong Kong 7.7%, South Korea 4.6%, Taiwan4.2%, Thailand 4.0%, Netherlands3.6%, Germany 3.5% (2011)[13]

Imports

$57.24 billion (2010)

Import goods

electronic products, mineral fuels, machinery and transport equipment, iron and steel, textile fabrics, grains, chemicals, plastic[5]

Main import partners

Japan 10.8%, United States 10.8%,China 10.1%, Singapore 8.1%, South Korea 7.3%, Taiwan 6.9%, Thailand5.8%, Saudi Arabia 5.4%, Malaysia4.4%, Indonesia 3.9% (2011)[14]

Gross external $62.431 billion (September 2011)[15] debt

Public finances

Public debt

40.5 % of GDP (2012)[16]

Revenues

$31.38 billion (2011)

Expenses

$35.95 billion (2011)[17]

Economic aid

$1.67 billion[18]

Credit rating

Standard & Poor's:[19] BBB- (Domestic) BBB- (Foreign) BBB- (T&C Assessment) Outlook: Positive[20]

Moody's:[21] Ba1 Outlook: Positive[22]

Fitch:[23] BBBOutlook: Stable

Foreign reserves

$85.761 billion (January 2013)[24]

Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars

The Economy of the Philippines is the 40th largest in the world, according to 2012 International Monetary Fund statistics and it is also one of the emerging markets in the world.[25] The Philippines is considered as a newly industrialized country, it has been transitioning from one based on agriculture to one based more on services and manufacturing. According to the CIA Factbook, the estimated 2012 GDP (purchasing power parity) was 424.355 billion.[5] Goldman Sachsestimates that by the year 2050, the Philippines will be the 14th largest economy in the world, Goldman Sachs also included the Philippines in its list of the Next Eleven economies. HSBC projects the Philippine

economy to become the 16th largest economy in the world, 5th largest economy in Asia and the largest economy in the South East Asian region by 2050.[26] Primary exports include semiconductors and electronic products, transport equipment, garments, copper products, petroleum products, coconut oil, and fruits. Major trading partners include the United States, Japan, China, Singapore, South Korea, the Netherlands, Hong Kong, Germany, Taiwan, and Thailand. The Philippines has been named as one of the Tiger Cub Economies together withIndonesia, Malaysia and Thailand.
Contents
[hide]

1 Macroeconomic trends 2 Composition by sector

o o o o o o o

2.1 Agriculture 2.2 Shipbuilding and repair 2.3 Automotive 2.4 Aerospace 2.5 Electronics 2.6 Mining and extraction 2.7 Offshoring and outsourcing

3 Regional Accounts 4 Economic indicators and international rankings 5 Statistics 6 Government budget 7 See also 8 References 9 Further reading 10 External links

[edit]Macroeconomic

trends

See also: Economy of Asia, Economic history of the Philippines (19731986),Post-EDSA macroeconomic history of the Philippines, and Economic Crisis and Response in the Philippines

The Philippine economy has been growing steadily over decades and the International Monetary Fund in 2011 reported it as the 45th largest economy in the world. However its growth has been behind that of many of its Asian neighbors, the so-called Asian Tigers, nor is it a part of the Group of 20 nations. Instead it is often grouped in a second tier of emerging markets or of newly industrialized countries. Depending upon the analyst, this second tier can go by the name the Next Elevenor the Tiger Cub Economies. A chart of selected statistics showing trends in the gross domestic product of the Philippines using data taken from the International Monetary Fund.[27][28]
GDP in PHP Billion (current prices) GDP in USD Billion (current prices) GDP per capita in USD (current prices)

Year

GDP growth in percent (constant prices, base year = 2000)

GDP in USD Billion (PPP)

GDP per capita in USD (PPP)

Peso vs Dollar Exchange Rate

1980

5.15

270.1

35.9

744

64.4

1334

7.51

1981

3.42

312.0

39.5

797

72.9

1471

7.90

1982

3.62

351.4

41.1

810

80.1

1578

8.54

1983

1.88

408.9

36.8

707

84.9

1630

11.11

1984

-7.32

581.1

34.8

652

81.6

1530

16.70

1985

-7.31

633.6

34.1

623

77.9

1426

18.61

1986

3.42

674.6

33.1

591

82.4

1471

20.39

1987

4.31

756.5

36.8

641

88.4

1540

20.57

1988

6.75

885.5

42.0

715

97.6

1663

21.09

1989

6.21

1025.3

47.3

786

107.6

1791

21.70

1990

3.04

1190.5

48.9

796

115.2

1873

24.33

1991

-0.58

1379.9

50.2

797

118.6

1882

27.48

1992

0.34

1497.5

58.7

912

121.8

1891

25.51

1993

2.12

1633.6

60.2

914

127.1

1929

27.12

1994

4.39

1875.7

71.0

1052

135.5

2007

26.42

1995

4.68

2111.7

83.7

1224

144.8

2118

25.24

1996

5.85

2406.4

93.5

1336

156.1

2232

24.74

1997

5.19

2688.7

92.8

1297

167.1

2336

28.98

1998

-0.58

2952.8

73.8

1009

168.1

2297

40.02

1999

3.08

3244.2

83.0

1110

175.8

2352

39.09

2000

4.41

3580.7

81.0

1053

187.5

2437

44.19

2001

2.89

3888.8

76.3

971

197.3

2511

50.99

2002

3.65

4198.3

81.4

1014

207.8

2591

51.60

2003

4.97

4548.1

83.9

1025

222.7

2720

54.20

2004

6.70

5120.4

91.4

1093

242.7

2905

56.04

2005

4.78

5677.8

103.1

1209

261.0

3061

55.09

2006

5.24

6271.2

122.2

1405

283.5

3260

51.31

2007

6.62

6892.7

149.4

1684

311.1

3507

46.15

2008

4.15

7720.9

173.6

1919

331.2

3661

44.47

2009

1.15

8026.1

168.5

1827

338.5

3670

47.64

2010

7.63

9003.5

199.6

2123

368.5

3920

45.11

2011

3.72

9734.8

224.75

2345

391.1

4080

43.31

2012

[4]

6.59

10568.4

257.51

2701

424.3

4430

41.04

GDP growth at constant 1985 prices in Philippine pesos:[27][29][30]

Year 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979

GDP growth %

4.6

4.9

4.8

9.2

6.4

5.6

5.2

5.6

Year

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

GDP growth %

5.149

3.423

3.619

1.875

-7.324

-7.307

3.417

4.312

6.753

6.205

Year

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

GDP growth %

3.037

-0.578

0.338

2.116

4.388

4.679

5.846

5.185

-0.577

3.082

Year

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

GDP growth % 4.411 2.894 3.646 4.970 6.698 4.778 5.243 7.117 4.153 1.148 7.632 3.718 6.6

[edit]Composition

by sector

As a newly industrialized country, the Philippines is still an economy with a large agricultural sector; however, services have come to dominate the economy.[citation needed] Much of the industrial sector is based on processing and assembly operations in the manufacturing of electronics and other hightech components, usually from foreign multinational corporations. Filipinos who go aboard to work-known as Overseas Filipino Workers or OFWsare a significant contributor to the economy but are not reflected in the below sectoral discussion of the domestic economy.
[edit]Agriculture

Pineapples on a fruit stand in Cagayan de Oro.

See also: Coconut production in the Philippines, Coffee production in the Philippines, and Rice production in the Philippines The agriculture sector makes up 12% of the GDP and employs 33% of the workforce. The type of activity ranges from small subsistence farming and fishing to large commercial ventures with significant export focus, such as major multinational corporations like Dole Food Company and Del Monte Foods.

The Philippines is the world's largest producer of coconuts producing 19,500,000 tons in 2009. Coconut production in the Philippines is generally concentrated in medium-sized farms.[31] By 1995, the production of coconut in the Philippines had experienced a 6.5% annual growth and later surpassed Indonesia in total output in the world.[32] The Philippines is also the world's largest producer of pineapples, with 2,198 thousand metric tons.[33] RiceProduction in the Philippines is important to the food supply in the country and economy. The country is the 8th largest rice producer in the world, accounting for 2.8% of global rice production.[34] However, the country is also the world's largest rice importer in 2010.[35]Rice is the most important food crop, a staple food in most of the country. It is produced extensively in Luzon, the Western Visayas, Southern Mindanao, and Central Mindanao.
[edit]Shipbuilding

and repair

The Philippines is a major player in the global shipbuilding industry with shipyards in Subic, Cebu, General Santos City andBatangas.[36][37] It became the fourth largest shipbuilding nation in 2010.[38][39] Subic-made cargo vessels are now exported to countries where shipping operators are based. South Korea's Hanjin started production in Subic in 2007 of the 20 ships ordered by German and Greek shipping operators.[40] The countrys shipyards are now building ships like bulk carriers, container ships and big passenger ferries. General Santos' shipyard is mainly for ship repair and maintenance.[41] Being surrounded by waters, the country has abundant natural deep-sea ports ideal for development as production, construction and repair sites. On top of the current operating shipyards, two additional shipyards in Misamis Oriental and Cagayan province are being expanded to support future locators. It has a vast manpower pool of 60,000 certified welders that comprise the bulk of workers in shipbuilding. In the ship repair sector, the Navotas complex in Metro Manila is expected to accommodate 96 vessels for repair.[42]
[edit]Automotive

The ABS used in Mercedes-Benz, BMW, and Volvo cars are made in the Philippines. Ford,[43] Toyota,[44] Mitsubishi, Nissan andHonda are the most prominent automakers manufacturing cars in the country.[citation needed] Kia and Suzuki produce small cars in the country. Isuzu also produces SUVs in the country. Honda and Suzuki produce motorcycles in the country. A 2003 Canadian market research report predicted that further investments in this sector were expected to grow in the following years. Toyota sells the most vehicles in the country.[45] By 2011, China's Chery Automobile company is going to build their assembly plant in Laguna, that will serve and export cars to other countries in the region if monthly

sales would reach 1,000 units.[46] Automotive sales in the Philippines moved up from 165,056 units in 2011 to over 180,000 in 2012. Japans automotive manufacturing giant Mitsubishi Motors has announced that it will be expanding its operations in the Philippines.[47]
[edit]Aerospace

Aerospace products in the Philippines are mainly for the export market and include manufacturing parts for aircraft built by both Boeingand Airbus. Moog is the biggest aerospace manufacturer with base in Baguio in the Cordillera region. The company produces aircraft actuators in their manufacturing facility. In 2011, the total export output of aerospace products in the Philippines reached US $3 billion.[48]
[edit]Electronics

. A Texas Instruments plant in Baguio has been operating for 20 years and is the largest producer of DSP chips in the world.[49] Texas Instruments' Baguio plant produces all the chips used in Nokia cell phones and 80% of chips used in Ericsson cell phones in the world.[50] Until 2005, Toshiba laptops were produced in Santa Rosa, Laguna. Presently the Philippine plant's focus is in the production of hard disk drives. Printer manufacturer Lexmark has a factory in Mactan in the Cebu region.
[edit]Mining

and extraction

Geothermal power station in Negros Oriental.

The country is rich with mineral and geothermal energy resources. In 2003, it produced 1931 MW of electricity from geothermal sources (27% of total electricity production), second only to the United States,[51] and a recent discovery of natural gas reserves in the Malampaya oil fields off the island of Palawan is already being used to generate electricity in three gas-powered plants. Philippine gold, nickel, copper and chromite deposits are among the largest in the world. Other important minerals

include silver, coal, gypsum, and sulphur. Significant deposits of clay, limestone, marble, silica, and phosphate exist. About 60% of total mining production are accounted for by non-metallic minerals, which contributed substantially to the industry's steady output growth between 1993 and 1998, with the value of production growing 58%. In 1999, however, mineral production declined 16% to $793 million.[citation
needed]

Mineral exports have generally slowed since 1996. Led by copper cathodes, Philippine mineral

exports amounted to $650 million in 2000, barely up from 1999 levels. Low metal prices, high production costs, lack of investment in infrastructure, and a challenge to the new mining law have contributed to the mining industry's overall decline.[citation needed] The industry rebounded starting in late 2004 when the Supreme Court upheld the constitutionality of an important law permitting foreign ownership of Philippines mining companies.[citation needed] However, the DENR has yet to approve the revised Department Administrative Order (DAO) that will provide the Implementing Rules and Regulations of the Financial and Technical Assistance Agreement (FTAA), the specific part of the 1994 Mining Act that allows 100% foreign ownership of Philippines mines.[citation needed]
[edit]Offshoring

and outsourcing

Cebu IT Park in Cebu

A business process outsourcing office inBacolod

Main articles: Business process outsourcing in the Philippines and Call center industry in the Philippines

According to an IBM Global Location Trends Annual Report, as of December 2010 thePhilippines has surpassed India as the world leader in business process outsourcing.[52][53]The majority of the top ten BPO firms of the United States operate in the Philippines.[citation needed] Total jobs in the industry grew to 100,000 and total revenues were placed at $960 million for 2005. In 2012, BPO sector employment ballooned to over 700,000 people and is contributing to a growing middle class. BPO facilities are located mainly inMetro Manila and Cebu City although other regional areas such as Baguio, Bacolod,Cagayan de Oro, Clark Freeport Zone, Dagupan, Davao City, Legazpi, Dumaguete, Lipa,Iloilo City, and CamSur are now being promoted and developed for BPO operations. Call centers began in the Philippines as plain providers of email response and managing services and is now a major source of employment. Call center services include customer relations, ranging from travel services, technical support, education, customer care, financial services, online business to customer support, and online business to business support.Business process outsourcing (BPO) is regarded as one of the fastest growing industries in the world. The Philippines is also considered as location of choice due to its less expensive operational and labor costs and high proficiency in spoken English and highly educated labor pool. In 2011, the business process outsourcing industry in the Philippines generated 700 thousand jobs[54] and some US$11 billion in revenue,[55] 24 percent higher than 2010. By 2016, the industry is projected to reach US$27.4 billion in revenue with employment generation to almost double at 1.3 million workers.[56]
[edit]Regional

Accounts

Gross Regional Domestic Product (GRDP) is GDP measured at regional levels.

GRDP (in billion PHP) Industry (in billion PHP) Services (in billion PHP) per capita GRDP

Region

Agriculture (in billion PHP)

% of GRDP

% of GRDP

% of GRDP

Metro Manila

3,479.905

17.891

0.51

591.035

16.98

2,870.979

82.50

288,062

Cordillera

210.079

21.082

10.04

116.522

55.47

72.474

34.50

127,614

Ilocos

293.918

75.097

25.55

79.448

27.03

139.372

47.42

61,076

Cagayan Valley

167.492

71.769

42.85

17.805

10.63

77.919

46.52

51,100

Region

GRDP (in billion PHP)

Agriculture (in billion PHP)

% of GRDP

Industry (in billion PHP)

% of GRDP

Services (in billion PHP)

% of GRDP

per capita GRDP

Central Luzon

882.806

145.975

16.54

373.250

42.28

363.580

41.18

85,186

CALABARZON

1,644.843

108.940

6.62

1,015.501

61.74

520.401

31.64

126,589

MIMAROPA

176.176

48.028

27.26

65.135

36.97

63.013

35.77

62,995

Bicol

206.619

57.728

27.94

44.855

21.71

104.036

50.35

37,526

Western Visayas

395.417

115.613

29.24

66.238

16.75

213.565

54.01

54,870

Central Visayas

601.880

51.890

8.62

213.968

35.55

336.023

55.83

86,880

Eastern Visayas

242.594

58.434

24.09

104.207

42.96

79.952

32.96

58,335

Zamboanga Peninsula

200.883

66.206

32.96

51.762

25.77

82.915

41.28

57,815

Northern Mindanao

467.100

115.283

31.40

102.251

27.85

149.566

40.74

93,628

Davao Region

408.450

104.792

25.66

112.821

27.62

190.837

46.72

89,552

SOCCSKSARGEN

261.548

97.932

37.44

71.445

27.32

97.171

35.24

62,080

Caraga

99.037

30.248

27.56

26,583

24.22

52.934

48.22

44,472

Muslim

86.048

58.287

67.74

3.641

4.23

24.120

28.03

26,004

Region

GRDP (in billion PHP)

Agriculture (in billion PHP)

% of GRDP

Industry (in billion PHP)

% of GRDP

Services (in billion PHP)

% of GRDP

per capita GRDP

Mindanao

Total

9,735.521

1,245.196

12.79

3,056.468

31.40

5,433.857

55.81

103,366

Note: Green-colored cells indicate higher value or best performance in index, while yellow-colored cells indicate the opposite.

[edit]Economic

indicators and international rankings

Further information: Philippine investment climate

Organization

Title

As of

Change from previous

Ranking

International Monetary Fund

Gross Domestic Product (PPP)

2012

1)

31st

[57]

International Monetary Fund

Gross Domestic Product (nominal)

2012

3)

40th

[58]

International Monetary Fund

GDP per Capita (PPP)

2011

126th

[59]

International Monetary Fund

GDP per Capita (nominal)

2011

1)

124th

[60]

International Monetary Fund

Foreign Reserves

2012

25th

[61]

United Nations

Population

2012

12th

[62]

United Nations

Area

2012

73rd

[63]

United Nations

Population Density

2010

45th

[64]

Organization

Title

As of

Change from previous

Ranking

Central Intelligence Agency

Life Expectancy

2011

133rd out of [65] 221st

United Nations

Literacy Rate

2011

84th out of [66] 182nd

The World Factbook

External Debt

2010

46th

[67]

World Tourism Organization

Tourist Arrival

2010

1)

52 out of 198

[68]

United Nations

Human Development Index

2011

1)

112 out of 187

[69]

World Economic Forum

Global Competitiveness

2012

10)

65 out of 144

[70]

Fraser Institute

Economic Freedom of the World 2012

16)

61 out of 144

[71]

World Economic Forum

Global Gender Gap Report

2011

1)

8 out of 135

[72]

World Economic Forum

Travel and Tourism Competitiveness

2011

94 out of 139

[73]

World Economic Forum

Global Enabling Trade Report

2012

20)

72 out of 132

[74]

World Bank

Ease of Doing Business

2012

12)

136 out of 183

[75]

Transparency International

Corruption Perceptions Index

2012

24)

105 out of 176

[76]

Heritage Foundation/The Wall Street

Index of Economic Freedom

2013

10)

97 out of 177

[77]

Organization

Title

As of

Change from previous

Ranking

Journal

The Economist Intelligence Unit

Global Peace Index

2012

3)

133 out of 158

[78]

Reporters Without Borders

Press Freedom Index

2011

16)

140 out of 178

[79]

World Economic Forum

Financial Development Index

2011

44 out of 60

[80]

[edit]Statistics

Further information: Income inequality in the Philippines and Poverty in the Philippines

Percentage of population in 2007 living below poverty line, by province. Provinces with darker shades have more people living below the poverty line.

Economic growth[81][82][83]

Year

% GDP

% GNI

1999

3.1

2.7

2000

4.4

7.7

2001

2.9

3.6

2002

3.6

4.1

2003

5.0

8.5

2004

6.7

7.1

2005

4.8

7.0

2006

5.2

5.0

2007

7.1

6.2

2008

4.2

5.0

2009

1.1

6.1

2010

7.6

8.2

2011

3.7

2.6

2012

6.6

5.8

* Computed at Constant 2000 Prices

** Source: NEDA and NSCB

Filipino exports in 2006

Graphical depiction of Philippines' product exports in 28 color-coded categories.

Most of the following statistics are sourced from theInternational Monetary Fund - Philippines (as of 2012; figures are in US dollars unless otherwise indicated).

GDP - purchasing power parity: $416.721 billion (2012est.) GDP - real growth rate: 6.6% (2012) GDP per capita purchasing power parity: $4,263.689 (2012 est. in 2012 US dollars) GDP nominal: $240.664 Billion (2012)[84] GDP per capita: $2,462.354 (2012 est.)[85] GDP - composition by sector: agriculture: 12.3% industry: 33.3% services: 54.4% (2011 est.)[5]

Population below poverty line:[5] 32.9% (2006 est.)[5] Household income or consumption by percentage share: lowest 10%: 2.4% highest 10%: 31.2% (2006)[5]

Inflation rate (consumer prices): 5.3% (2011 est.),[5] 3.5% (September 2010)[86] Labor force: 39.81 million (2011 est.)[5]

Labor force by occupation: agriculture 33% industry 15% services 52% (2011 est.)[5]

Unemployment rate: 7.2% (April 2011)[10] Budget: revenues: $31.99 billion (2011 est.)[5] expenditures: $36.71 billion (2011 est.)[5]

Foreign Reserves: US$81.90 billion (September 2012)[87] Industries: electronics assembly, garments, footwear, pharmaceuticals, chemicals, wood products, food processing, petroleum refining, fishing Industrial production growth rate: 12.1% (2010 est.)[5] Electricity - production: 59.19 billion kWh (2009 est.)[5] Electricity - consumption: 54.4 billion kWh (2009 est.)[5] Electricity - exports: 0 kWh (2007)[5] Electricity - imports: 0 kWh (2007)[5] Agriculture products: sugarcane, coconuts, rice, corn, bananas, cassavas,pineapples, mangoes; pork, egg s, beef; fish[5]

Exports: $54.17 billion (2011 est.); $69.46 billion (2010 est.)[5][88] Exports - commodities: semiconductors and electronic products, transport equipment, garments, copper products, petroleum products, coconut oil, fruits[5]

Exports - partners: China 19%, United States 13.4%, Singapore 13.2%, Japan 12.8%, Hong Kong 7.6%, Germany 4.2%, South Korea 4.1% (2010)[5] Imports: $68.84 billion (2011 est.)[5] Imports - commodities: electronic products, mineral fuels, machinery and transport equipment, iron and steel, textile fabrics, grains, chemicals, plastic[5]

Imports - partners: Japan 14.1%, China 13.6%, United States 9.9%, Singapore 9.3%, Thailand 6.5%, South Korea 5.6%,Indonesia 4.1% (2010)[5] Debt - external: $62.41 billion (31 December 2011 est.)[5] Currency: 1 Philippine peso () = 100 centavos

Exchange rates: Philippine pesos (PHP) per US dollar - 43.44 (2011), 45.11 (2010), 47.68 (2009), 44.439 (2008), 46.148 (2007), 51.246 (2006),[5] 55.086 (2005[citation needed])

[edit]Government

budget

Main article: Fiscal policy of the Philippines The national government budget for 2012 has set the following budget allocations:[89]
Millions of Pesos Millions of US Dollars (PHP) (USD)

Budget Allocation

Department of Education

238,800

$5,513.7

13.15

Department of Public Works and Highways

126,400

2,918.5

6.96

Department of National Defense

108,100

2,496.0

5.95

Department of Interior and Local Government

99,800

2,304.3

5.50

Department of Agriculture

61,400

1,417.7

3.38

Department of Social Welfare and Development

48,800

1,126.8

2.69

Department of Health

45,800

1,057.5

2.52

Department of Transportation and Communications 34,700

801.2

1.91

State Universities and Colleges

25,800

595.7

1.42

Department of Finance

23,600

544.9

1.30

Department of Environment and Natural Resources 17,500

404.1

0.96

[edit]See

also

Economy portal

Philippines portal

List of companies of the Philippines Next Eleven Tiger Cub Economies Newly Industrialized countries Economy of Asia Emerging markets

[edit]

Manufacturing
Immediately after independence, the government concentrated its efforts on reconstructing and rehabilitating the war-damaged economy. In 1949 import and foreign exchange controls were imposed to alleviate a balance of payments problem. Imports fell dramatically, providing a stimulus for the development of light industry oriented toward the domestic market. Manufacturing growth was rapid, averaging 9.9 percent per year during the 1950s. Initially, textiles, food manufactures, tobacco, plastics, and light fabrication of metals dominated. There also was some assembly of automobiles and trucks and construction of truck and bus bodies. By the early 1960s, however, manufacturing growth declined to slightly less than the growth of GNP. The share of the labor force in manufacturing in 1988 was 10.4 percent, less than it was in 1956, although the share had grown to 12 percent in 1990. By the late 1980s, and in part the consequence of local content laws that were intended to enhance linkage among various manufacturing industries and increase self-sufficiency, the industrial structure had become more complex, with intermediate and capital goods industries relatively large for a country at the Philippines' stage of development. By the mid-1980s, an ambitious US$6 billion industrial development program originally undertaken by the Marcos regime in 1979 had resulted in operational copper smelter-refinery, cocochemical manufacturing, and phosphatic fertilizer projects. A cement-industry rehabilitation and expansion program and an integrated iron and steel mill project were still underway. A petrochemical complex appeared about to be undertaken in 1990, but was bogged down in a dispute over location and financing. Manufacturing output fell in the political and economic crisis of 1983, and industry in 1985 was working at as low as 40 percent of capacity. By the middle of 1988, after economic pump priming by the Aquino regime, industries were again working at full capacity. In 1990 the Board of Investments approved investment projects valued at US$3.75 billion, including US$1.48 billion targeted to the manufacturing sector.

Manufacturing production is geographically concentrated. In 1990, 50 percent of industrial output came from Metro Manila and another 20 percent from the adjoining regions of Southern Tagalog and Central Luzon. Prior to 1986, government efforts to distribute industry more evenly were largely ineffective. In the post-Marcos economic recovery, however, investment grew in small and medium-sized firms producing handicrafts, furniture, electronics, garments, footwear, and canned goods in areas outside of Metro Manila, particularly in Cebu City and Davao City. In 1990 the industrial sector was inefficient and oligopolistic. Although small- and medium-sized firms accounted for 80 percent of manufacturing employment, they accounted for only 25 percent of the value added in manufacturing. Most industrial output was concentrated in a few, large establishments. For example, a six-month Senate inquiry determined in 1990 that eight of the country's seventeen cementmanufacturing companies were under control of a single firm.

Mining Energy TourismPhilippines economic development has been very fast in recent years.

However, in last three decades, growth rate has been fastest. Real gross domestic product for this time was estimated to be 7 percent, but growth has slowed down a bit in 2008, which came to about 4.5% because of world financial crisis. Economic development in Philippines economy has been because of high government spending. A hard working service sector and large allowance from millions of Filipinos working abroad played an important role in Philippines economic development. Since, Macapagal-Arroyo came into power in 2001 there has been an economic growth of 5 percent. Still, Philippines needs a further increase in growth rate in order to sustain growth in economy. More economic development of Philippines is required to alleviate poverty from that country and address imbalances in distribution of income. It also stresses on high population growth. Macapagal-Arroyo also has taken great care introduce new revenue measures to constrict expenditures of country. New developments in economy of Philippines can be expected because of positive efforts in lowering fiscal deficits, narrowing debt and debt service ratios. There has been an increase in expenditure in infrastructure of country. Economic prospects of Philippines have grown, which in turn would augur well for economic development at Philippines. Though there has not been any negative impact on macroeconomic outlook of Philippines economy, yet this nation has faced some setbacks because of various external reasons. It has also faced challenges from regional competitors. Main focus of Philippines has been to develop employment opportunities and lessen poverty. Long term Philippines economic development can only be possible if these areas are properly taken care of. Purchasing power parity of GDP for fiscal year 2008 was $327.2 billion, while official exchange rate of GDP was $172.3 billion. Per capita GDP as was recorded in 2008 was $3,400 and 4.5% is real growth rate in gross domestic product.

Agricultural sector contributes about 13.8% to GDP, 2008 of Philippines economy and 31.9% is received from industry. From service sector of Philippines economy contribution towards Philippines GDP is about 54.3%. Philippines economic development is also result of agricultural products, which includes corn, sugarcane, pineapples, coconuts, bananas, rice, cassavas, mangoes and pork, eggs, beef and fish. Major industries that contribute to economic development of Philippines are wood products, electronics assembly, food processing, footwear, garments, pharmaceuticals, chemicals, petroleum refining and fishing.

inShare

More from Economy Watch

Top Ten Economies of the World

The Worlds Largest Economies

Sex Trade, Sex Industry

Pakistan Economy

From Around The Web

Iranian President Says He Wants To Be Country's FirstBy: redOrbit

What Can Gold Prices Teach Retailers About How To PriceBy: Price Intelligence Blog

Francois Hollande's government brings transfer pricingBy: TP Week

Whats a Kentucky Derby Win Worth?By: The Financialist

Recommended by

See more Economy Watch features

Most Popular in Philippines Economy

Philippines Economy: The Philippines or the Republic of the Philippines Philippines Trade, Exports and Imports: Historically, the Philippines have been an

The Philippines Economic Growth: About The Philippines economic growth The Philippines Economic Development: Philippines economic development has been very Philippines Economic Forecast: Philippines is the 33rd largest economy in the Philippines Industry Sectors: Philippines has an advanced developed economy, Related Links

Featured Sections
Philippines Economy Central Banks

China Economy Companies &

Investments Indian Business Management Institutes Industries &

Business Personal Finance US Companies US Credit Cards US Economy

World

Economy

More about the Economy o