The Philippines, led by President Benigno Aquino III and followed by Rodrigo Duterte, is slowly but steadily emerging as an emerging tiger, highlighted by Motoo Konishi.world BankCountry Director, during the 2013 Philippine Development Forum.
Clean governance, strong leadership, growing infrastructure and political aspirations have catapulted the Philippines onto a faster growth path. However, like all growing economies, thedripThe full impact has not yet been felt, and the social issues that impede growth – poverty, inequality and unemployment – need to be seriously addressed. The future is bright as the Philippines has a young and growing workforce that speaks Englishtransfersfrom abroad, and household debt is among the lowest in Asia.
Although the Philippine economy has grown at a modest pace throughout the 21st century, the economy has experienced significant growth over the past two decades. Its average annual growth in the decade between 2000 and 2009 was 4.6%, and between 2010 and 2019 it skyrocketed to 6.4%.This removed the country from being a lower middle income gross national income nation.per personfrom less than $1,000 before 2000 to $3,160 in 2021, with expectations of further increases.
The central theses
- The Philippines has experienced rapid economic growth since the 2000s, but the country still remains a developing economy with an average per capita income well below that of developed countries.
- The country's economy is increasingly dependent on services, which already represent more than 61% of GDP.
- Remittances sent abroad by Filipino workers now account for around 10% of the country's total GDP.
Agriculture
The composition ofgross domestic product(GDP) is roughly split between the agriculture, industry and service sectors. In 2021, agriculture accounted for around 10% of GDP, marking the smallest contribution to GDP in the country's history.To put this in perspective, agriculture accounted for a quarter of the country's GDP in the 1980s and nearly a third in the 1970s. The industrial and service sectors accounted for 30.8% and 60%, respectively. Note that the share of industrial production has also steadily declined over time, while the service sector has increased significantly.
The Philippines has gradually transformed itself from an agricultural economy to an industrial and service-oriented economy. In 1980, agriculture accounted for about a quarter of the country's GDP, but it has fallen to 9.3% over the years. The agricultural sector includes forestry, hunting, fishing, agriculture and livestock. The sector accounts for about 25% of the workforce. The main agricultural products are sugar cane, coconut, rice, corn, banana, cassava (cassava), tapioca, pineapple, mango, pork, eggs, beef and fish.
The low level ofproductivityand slow growth in the Philippine agricultural sector has resulted in a high incidence ofPovertywithin the industry. The lack of government initiatives was the main reason for the decline of the agricultural sector, which suffered from precarious infrastructure and low levels of investment. These factors were aggravated by the long periods of drought that the country suffered.
Fortunately, things seem to be changing as the government is investing heavily in this sector. The government supports Department of Agriculture (DA) programs in an effort to improve food security, rural incomes and infrastructure. Some of the DA's initiatives that aim to reduce post-harvest losses while making produce cheaper and stabilizing labor costs are Agricultural Mechanization, National Organic Agriculture and Post-Harvest Development.
Then there is the World Bank-backed Philippines Rural Development Project, which aims to improve rural infrastructure. In addition, crop insurance designed to cover the costs of devastating weather events is being rapidly expanded by the government through the Philippine Crop Insurance Corporation. Given these and many other measures, the agricultural sector in the Philippines is expected to experience an increase in productivity and production in the near future.
Industry
The manufacturing sector has made a fair and sustainable contribution to the Philippines' GDP over the years, reaching nearly 45% in the 1980s and falling to less than 28% in 2021.This sector still employs nearly a fifth of the country's workforce. Philippine government makes recruitment effortsdirect foreign investment(ADI) in the country by improving its infrastructure. The country has developed a series of economic zones that have attracted many foreign companies. According to reports, some companies will move their production from China, their traditional location, to the Philippines and neighboring countries in Southeast Asia. These measures will help sustain the growth of the industrial sector in the coming years.
Major industries in the Philippines include manufacturing and agribusiness. Within manufacturing, mining and mineral processing, pharmaceuticals, shipbuilding, electronics and semiconductors are the focus areas. The Philippines is one of the most attractive pharmaceutical markets in the Asia-Pacific region. The Philippines is also rich in metallic resources and the country has attracted many foreign companies to its lands. BHP and Sumitomo Metal Mining Co Ltd are among them. In addition, the arrival of foreign players helped the country realize its shipbuilding potential. The island nation is the fourth largest shipping country (after China, South Korea and Japan).
The electronics industry in the Philippines has been active since the mid-1970s, when Western companies sought to relocate manufacturing facilities to address rising production costs. The electronics industry in the Philippines has only grown and improved since then, and is an important part of the country's economy in terms of job creation, tax contributions,Export, family income and participation in GDP.
Agribusiness consists mainly of processed fruits and vegetables, seaweed, tropical fruit purees and juices, fresh tropical fruits, mango seed oil, sugar plantations, bioethanol, biofuels and coconut methyl ester.
service sector
It isservice sectorof the Philippines overtook the manufacturing sector in terms of contribution to GDP in the early 1980s, rising from 36% in 1980 to over 60% in 2020.The service sector now employs a corresponding number of the country's workforce, which is more than the agricultural and industrial sectors combined.
In the service sector,Business process outsourcing(BPO) has played a significant role in the growth of the sector. The Philippines was able to expand its BPO sector because it had professionals who spoke the required languages, in part due to the interest in the US culture, for which the country is the largest BPO market in the Philippines, and the customer service oriented aspect of the professionals in the industry.
The second important segment within the services sector is tourism, which has a long history of moderate growth. Tourism in the Philippines has not been able to make the most of its resources and lags behind its regional cousins (such as Singapore, Indonesia and Thailand) in attracting international tourists. Inadequate infrastructure (airports, poor rail and road connections), insufficient tourist services and facilities are among the main reasons.
transfers
Another segment is export services, which include the services of Filipinos working abroad as permanent, temporary or irregular migrants. This onetransfersof Filipinos working abroad has grown significantly over the years. Their jobs have also undergone a structural shift from simple service jobs to more professional jobs that require higher educational skills.
Remittances from abroad remain strong at around 10% of GDP.This level increased from 8.5% in 2000 to 3.3% in 1990 and only 1.93% in 1980. The emergence of the BPO industry is seen as a driver of consumer spending and job creation due to strong foreign income . This turns out to be a good alternative mechanism for the nation. The BPO industry's growing base and growth prospects will not only boost the country's service sector, but could also persuade some of its residents to return home, while combating the threat of falling remittances from its residents. abroad.
What is the main export of the Philippines?
The Philippines' main exports are semiconductors and electronics (>40%). Various manufactured and artisanal products follow (16%).
What is the Philippine currency?
The national currency of the Philippines is called the peso and is traded under the symbol FXPHP🇧🇷 A weight, usually represented by the symbol ₱. consists of 100 cents orWe feel🇧🇷 As of March 2022, $1 is about PHP 52.5.
Is the Philippines considered a developing country?
Thatworld Bankclassifies the Philippines as a developing country. Developing countries are classified by the World Bank as having relatively lower per capita GDP, less developed levels of industrialization and technological advancement, and lowerHuman development Index(HDI) compared to more developed countries.
the end result
The balanced and harmonious growth of agriculture, industry and the service sector is essential for any economy to prosper. Once achieved, improvements in the tertiary sectors of the economy will naturally follow. For many decades, the Philippines has lagged behind its richer neighbors in Southeast Asia and East Asia in terms of economic and social development. But those times are over. The Philippines today seems firmly on the path to growth and sustainability.
FAQs
How do you evaluate the Philippine economic resources? ›
Gross Domestic Product (GDP) and Gross National Income (GNI)
The performance of the Philippine economy is monitored by looking at the year-on-year growth of Gross Domestic Product (GDP), which measures the country's output of goods and services during an accounting period.
The most recognized of these indices is the International Monetary Fund, which monitors economic development around the world and provides monetary assistance to developing countries. Some of the most rapidly emerging countries include Brazil, Turkey, Russia, India, and China.
How strong is Philippine economy based on our GDP? ›| Statistics | |
|---|---|
| Population | 109,035,343 (2020) |
| GDP | $433.195 billion (nominal, 2022 est.) $1.110.810 trillion (PPP, 2022 est.) |
| GDP rank | 32nd (nominal, 2022) 27th (PPP, 2022) |
| GDP growth | 6.3% (2018) 6.0% (2019) −9.5% (2020) 5.6% (2021) |
GDP in Philippines averaged 100.95 USD Billion from 1960 until 2021, reaching an all time high of 394.09 USD Billion in 2021 and a record low of 4.95 USD Billion in 1962. This page provides - Philippines GDP - actual values, historical data, forecast, chart, statistics, economic calendar and news.
What is the current status of the Philippine financial markets 2022? ›Due to rising domestic investment and consumption as pandemic restrictions eased, the Philippine economy is poised to grow by 6.5% - 7.5% in 2022 and could further rise by 8% in 2023, forecasted to be the highest economic growth rate among ASEAN+3 countries.
What is the biggest economic problem in the Philippines? ›high inflation during crisis periods; high levels of population growth; high and persistent levels of inequality (incomes and assets), which dampen the positive impacts of economic expansion; and. recurrent shocks and exposure to risks such as economic crisis, conflicts, natural disasters,and "environmental poverty."
What are the fastest growing emerging markets? ›China, Vietnam, Uganda, Indonesia, and India are projected to be among the fastest-growing economies to 2030.
Which are the four largest emerging markets? ›There are many emerging markets around the world, but the four largest are known as the "BRICs" (an acronym for Brazil, Russia, India, and China). Many investors believe that these markets are relatively stable and may eventually replace the G7 as the world's next superpowers.
What are today's emerging markets? ›The Five Major Emerging Markets. Brazil, Russia, India, China, and South Africa are the biggest emerging markets in the world.
What is the highest contributor of Philippines GDP? ›In 2021, the share of agriculture in the Philippines' gross domestic product was 10.07 percent, industry contributed approximately 28.89 percent and the services sector contributed about 61.05 percent.
When was the Philippines economy at its best? ›
Between 1972 and 1979, the Philippines enjoyed its best economic development since 1945.
What is the highest GDP growth rate in the Philippines? ›GDP Annual Growth Rate in Philippines averaged 3.70 percent from 1982 until 2022, reaching an all time high of 12.10 percent in the second quarter of 2021 and a record low of -16.90 percent in the second quarter of 2020.
What is the importance of GDP in the Philippines? ›GDP is important because it gives information about the size of the economy and how an economy is performing. The growth rate of real GDP is often used as an indicator of the general health of the economy. In broad terms, an increase in real GDP is interpreted as a sign that the economy is doing well.
What can the Philippines do to improve the economy in the future? ›The top three policy reform areas for sustaining high growth and productivity, prerequisites for achieving Ambisyon Natin 2040 are: (i) improving market competition through regulatory reforms; (ii) improving trade and investment climate policies and regulations; (iii) reducing labor market rigidities and costs.
How would you describe the economy of Philippines today? ›The Philippines is ranked 15th among 39 countries in the Asia–Pacific region, and its overall score is above the regional and world averages. Economic growth in the Philippines slowed from 2017 through 2019, turned negative in 2020, and rebounded in 2021. Over the same five-year period, economic freedom has slipped.
Is the Philippine economy improving 2022? ›The Philippines' gross domestic product (GDP) will grow 6.5% in 2022, the same as forecast in July but up from the bank's April forecast of 6.0%, according to Asian Development Outlook (ADO) 2022 Update.
Is the Philippine economy getting better? ›Anchored on more robust domestic activities, the Philippines is poised to grow 5.7 percent in 2022 and 5.6 percent on average in 2023-24 amidst intensifying global uncertainties. Continuity of policies supporting growth and investments are key to strengthening recovery in the Philippines.
What market structure the Philippines currently have? ›Data show that the Philippine economy is more concentrated than other economies in the region, with a higher proportion of monopoly, duopoly, and oligopoly markets.
Why Philippines economy is poor? ›A lack of access to productive capital and limited market access has created slow economic growth and underemployment. The rural poor have limited options for off-farm employment and low access to inexpensive financial services. The majority of poor Filipino households have only achieved basic levels of education.
Why Philippines is still a developing country? ›At present, the Philippines is continuously facing a high population rate and low gross domestic product (GDP). Millions of Filipinos are still suffering from poverty and struggling with exporting their products up where inflow is greater than outflow of commodities within the country.
Why do we have a less developed economy in the Philippines? ›
Aside from social, economic and political issues, environmental factors also contribute towards making the Philippines poor. Many rural Filipinos depend on the country's extensive natural resources, particularly for the fishing and agricultural industries.
Will emerging markets do well in 2022? ›Growth in emerging markets is forecast to slow, but continue to outpace the expansion in developed economies. Most emerging economies in Asia are set to grow by 2-3% per year in 2022-50; by contrast, we forecast that the pace of growth will average just 1-2% per year in the US and in much of western Europe.
Why is emerging market important? ›The biggest advantage of emerging market investments is the potential for high growth. Diversification. International investments can be a good diversifier for your investment portfolio because economic downturns in one country or region, including the U.S., can be offset by growth in another.
Which emerging market is best? ›The BRIC economies—Brazil, Russia, India, and China—are among the most popular emerging markets. In general, investors may want to consider allocating a portion of their portfolio to these markets, although there are some risks involved.
Which country is the best example of an emerging market economy? ›Top Emerging Countries
BRIC countries or Brazil, Russia, India and China. These countries are currently considered the top four emerging markets.
An emerging market economy refers to a country that is in the process of developing its economy to become more advanced. It generates low to middle per capita income and is rapidly expanding due to high production levels and significant industrialization.
How do you identify emerging markets? ›Although there is no formal definition, emerging markets are generally identified based on such attributes as sustained market access, progress in reaching middle-income levels, and greater global economic relevance (see box).
How do you target emerging markets? ›- Enter Low and Middle End Segments of the Market. ...
- Take the Merger and Acquisition Route. ...
- Display Commitment and Send Senior Talent. ...
- Closing Thoughts. ...
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GDP per capita in Philippines averaged 1952.72 USD from 1960 until 2021, reaching an all time high of 3664.79 USD in 2019 and a record low of 1193.18 USD in 1960.
What have been the main trends in GDP growth rate of the Philippines? ›GDP Growth Rate in Philippines averaged 1.16 percent from 1998 until 2022, reaching an all time high of 7.80 percent in the third quarter of 2020 and a record low of -14.90 percent in the second quarter of 2020.
Which industry is booming in the Philippines? ›
E-Commerce Industry
The e-commerce sector is one of the industries expected to grow significantly in 2022. The pandemic hasn't stopped it from growing in 2020. The Department of Trade and Industry announced in 2021 that it intended to expand the e-commerce sector's share of the GDP to 5.5%.
In the case of the Philippines, which is the region's fastest-growing economy, the 8.3-percent growth in the first quarter of 2022 exceeded analysts' forecasts. Manufacturing activity in ASEAN region has been on expansion for eight consecutive months since the last quarter of 2021.
Is Philippines developed or developing? ›Is the Philippines Considered a Developing Country? Yes, the World Bank classifies the Philippines as a developing economy.
Which country is fastest growing GDP? ›...
List (2021)
| Rank | Country | Real GDP growth rate (%) |
|---|---|---|
| 1 | Libya | 179.092 |
| 2 | Maldives | 31.712 |
| 3 | Guyana | 19.994 |
| 4 | Macao | 18.033 |
One of the fastest growing industry sectors in Philippines currently is the business process outsourcing (IT-BPO) industry.
How do you analyze a country's GDP? ›GDP can be calculated by adding up all of the money spent by consumers, businesses, and the government in a given period. It may also be calculated by adding up all of the money received by all the participants in the economy. In either case, the number is an estimate of "nominal GDP."
What is the GDP of the Philippines 2022? ›During the third quarter of 2022, the gross domestic product (GDP) of the Philippines amounted to approximately 5.24 trillion Philippine pesos. The country's GDP reflected an 7.6 percent growth in that period, particularly due to growth in the construction industry.
How does GDP affects the economic growth of a country? ›When GDP growth is strong, firms hire more workers and can afford to pay higher salaries and wages, which leads to more spending by consumers on goods and services. Firms also have the confidence to invest more when economic growth is strong, and investment lays the foundation for economic growth in the future.
What drives economic growth in the Philippines? ›Industry and Trade
Services, industry, and agriculture are the main sectors of the Philippine economy. Food processing, cement, iron, and steel production, and telecommunications are among the country's most significant contributors.
Growth creates jobs
Economic growth generates job opportunities and hence stronger demand for labour, the main and often the sole asset of the poor.
What happened to the economy of the Philippines now? ›
The Philippines is well on its way to full recovery. After the pandemic-driven recession in 2020, the economy grew by 5.7 percent last year and sustained its robust momentum with an 8.3 percent growth in the first quarter of 2022. Now, our original growth target of 7-9 percent this year appears to be doable.
What is the GDP of Philippines now? ›A yearly 2.5-3.5% GDP growth rate is good for providing ample growth in jobs and corporate profits. And for developing countries like the Philippines, a huge leap from the average growth rate helps in expediting the improvement and stabilization of the economy.
What are the 5 economic problems in the Philippines? ›Among the issues that they address are food insecurity, hunger and poor nutrition, poor quality of education, land and housing insecurity, and poor sanitation.
How do you evaluate the economy of a country? ›The size of a nation's overall economy is typically measured by its gross domestic product, or GDP, which is the value of all final goods and services produced within a country in a given year.
What is the best way to evaluate the economy? ›What's the best way to gauge the health of the economy? Gross domestic product, a measurement that calculates the value of all goods and services produced, has long been a good way to take the financial temperature of the country. Economists use it to determine whether a nation is in an expansion or a recession.
How do you evaluate a country's economic performance? ›The most common way to measure the economy is real gross domestic product, or real GDP. GDP is the total value of everything - goods and services - produced in our economy. The word "real" means that the total has been adjusted to remove the effects of inflation.
How do you evaluate the economic development? ›Different methods, such as Gross National Product (GNP) and Gross Domestic Product (GDP) can be employed to assess economic growth. Gross Domestic Product measures the value of goods and services produced by a nation.
Why is real GDP the best way to measure the economy? ›GDP is important because it gives information about the size of the economy and how an economy is performing. The growth rate of real GDP is often used as an indicator of the general health of the economy. In broad terms, an increase in real GDP is interpreted as a sign that the economy is doing well.
Is GDP the best way to measure economic well being? ›GDP is an accurate indicator of the size of an economy and the GDP growth rate is probably the single best indicator of economic growth, while GDP per capita has a close correlation with the trend in living standards over time.
What does GDP tell us about the economy? ›
GDP measures the total market value (gross) of all U.S. (domestic) goods and services produced (product) in a given year. When compared with prior periods, GDP tells us whether the economy is expanding by producing more goods and services or contracting due to less output.
What is the most powerful tool in the economic analysis? ›Slope is one of the most important tools used for economic analysis. It helps in determining the changes produced in one variable with a change in another variable.
Which method of GDP calculation is better? ›The expenditure approach is the most commonly used GDP formula, which is based on the money spent by various groups that participate in the economy.
What is the most accurate way to measure the strength of a country's economy? ›The standard way of measuring a country's economic success is to look at per capita gross domestic product — the total output of goods and services divided by population. The more cars and computers produced and the more doctor visits and restaurant meals per person, the better the economy is thought to be doing.
What are the four 4 key indicators of economic performance of a country? ›Gross Domestic Product (GDP)
Consumption. Investment. Government Expenditure. Net Exports.
Answer and Explanation: The GDP cannot be fully accurate because it fails to account for transactions that aren't recorded, free labor or changes in actual income, quality changes of goods, and goods produced but not exchanged for money.
What are the 4 main indicators of economic performance? ›Economic indicators include measures of macroeconomic performance (gross domestic product [GDP], consumption, investment, and international trade) and stability (central government budgets, prices, the money supply, and the balance of payments).
What can you say about economic development of the Philippines? ›Anchored on more robust domestic activities, the Philippines is poised to grow 5.7 percent in 2022 and 5.6 percent on average in 2023-24 amidst intensifying global uncertainties. Continuity of policies supporting growth and investments are key to strengthening recovery in the Philippines.
What are the economic goals of the Philippines? ›In his first State of the Nation Address before a joint session of Congress, Marcos said his administration would aim for a 6.5% to 8% annual gross domestic product growth from 2023 through 2028, forecasting that the poverty rate would fall in that period to 9% from the current 23.7%.
How does GDP affect the economy? ›Faster growth in gross domestic product (GDP) expands the overall size of the economy and strengthens fiscal conditions. Broadly shared growth in per capita GDP increases the typical American's material standard of living.