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The Economy of Philippines

Philippine Economy

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Economy - overview: Economic growth has averaged 5% since President MACAPAGAL-ARROYO took office in 2001. MACAPAGAL-ARROYO averted a fiscal crisis by pushing for new revenue measures and, until recently, tightening expenditures. Declining fiscal deficits, tapering debt and debt service ratios, and increased spending on infrastructure and social services bolstered optimism over Philippine economic prospects. Although the general macroeconomic outlook improved significantly in recent years, the economy still faces several long term challenges. The Philippines must maintain the reform momentum in order to catch up with regional competitors, improve employment opportunities, and alleviate poverty. The Philippines will need still higher, sustained growth to make progress in alleviating poverty, given its high population growth and unequal distribution of income. The Philippine economy grew at its fastest pace in three decades in 2007 with real GDP growth exceeding 7%, but growth slowed to 4.5% in 2008 as a result of the world financial crisis. High government spending, a relatively small trade sector, a resilient service sector, and large remittances from the four- to five-million Filipinos who work abroad have helped cushion the economy from the current financial crisis.

GDP:

GDP - real growth rate: 4.6% (2008 est.) 7.2% (2007 est.) 5.4% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 14.7% industry: 31.6% services: 53.7% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 2.4% highest 10%: 31.2% (2006)

Distribution of family income - Gini index: 45.8 (2006)

Inflation rate (consumer prices):

Labor force: 36.81 million (2008 est.)

Labor force - by occupation: agriculture: 35% industry: 15% services: 50% (2008 est.)

Unemployment rate: 7.4% (2008 est.)

Budget: revenues: $26.75 billion expenditures: $28.2 billion (2008 est.)

Industries: electronics assembly, garments, footwear, pharmaceuticals, chemicals, wood products, food processing, petroleum refining, fishing

Industrial production growth rate: 5% (2008 est.)

Electricity - production: 56.51 billion kWh (2007 est.)

Electricity - production by source:

Electricity - consumption: 47.04 billion kWh (2006 est.)

Electricity - exports: 0 kWh (2007)

Electricity - imports: 0 kWh (2007)

Oil - production: 23,930 bbl/day (2007 est.)

Oil - consumption: 340,100 bbl/day (2006 est.)

Oil - exports: 41,160 bbl/day (2005)

Oil - imports: 355,800 bbl/day (2005)

Oil - proved reserves: 138.5 million bbl (1 January 2008 est.)

Natural gas - production: 2.2 billion cu m (2006 est.)

Natural gas - consumption: 2.2 billion cu m (2006 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 98.54 billion cu m (1 January 2008 est.)

Agriculture - products: sugarcane, coconuts, rice, corn, bananas, cassavas, pineapples, mangoes; pork, eggs, beef; fish

Exports: $49 billion f.o.b. (2008 est.)

Exports - commodities: semiconductors and electronic products, transport equipment, garments, copper products, petroleum products, coconut oil, fruits

Exports - partners: US 17%, Japan 14.5%, Hong Kong 11.5%, China 11.4%, Netherlands 8.2%, Singapore 6.2%, Malaysia 5%, Germany 4.3% (2007)

Imports: $58 billion f.o.b. (2008 est.)

Imports - commodities: electronic products, mineral fuels, machinery and transport equipment, iron and steel, textile fabrics, grains, chemicals, plastic

Imports - partners: US 14.1%, Japan 12.3%, Singapore 11.2%, Taiwan 7.3%, China 7.2%, Saudi Arabia 6.4%, South Korea 5.9%, Malaysia 4.1%, Thailand 4.1% (2007)

Debt - external: $53.48 billion (31 September 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: Philippine pesos (PHP) per US dollar - 44.439 (2008 est.), 46.148 (2007), 51.246 (2006), 55.086 (2005), 56.04 (2004)

Fiscal year: