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flag Philippines Philippines: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

The Philippines' economy has strengthened in the recent years, a fact that protected it from the direct impacts of the global financial crisis and the recession, but without sparing it totally.  After having attained in 2009 its lowest level since the Asian crisis (1.1%), the growth of the Philippines' GDP has revived in 2010, increasing to 7% according to the estimations.  On the track of the dynamic revival that the country has experienced, supported by the augmentation of exports in the manufacturing sector, the Philippines' economy has also profited, in a particular sense,  from the presidential elections. 

The plan of the  "economic resilience" launched at the beginning of 2009, gives priority to the "post-crisis" management through a budgetary deficit control in order to stimulate the economy and compensate the effects of the crisis.  The objective at mid-term is to bring the budget deficit  to 2% of the GDP from now until 2013.  The new president, Benigno Aquino, has presented on his agenda 16 points in the "Social Contract with the Filipino People", they emphasize the need to insure a long-term growth and reduce poverty.

On a social level, the country faces several challenges: the population living under the poverty threshold has increased in these recent years (33% of the population), the crisis has aggravated  the unemployment rate (8% of the active population), there is a significant demographic growth and  the  inequality in wealth distribution persists.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 168.49199.59e216.10232.09248.76
GDP (Constant Prices, Annual % Change) 1.17.6e4.74.95.0
GDP per Capita (USD) 1,8272,123e2,2552,3762,496
General Government Gross Debt (in % of GDP) 47.144.744.443.642.2
Inflation Rate (%) 3.23.8e4.54.14.0
Unemployment Rate (% of the Labor Force) 7.57.27.27.27.0
Current Account (billions USD) 9.368.473.67e2.943.00
Current Account (in % of GDP) 5.64.21.7e1.2-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

The agricultural  sector employs about 40% of the labor force but contributes to less than 15% of the GDP. The Philippines is one of the world's main producers of rice and coconut. However, the agricultural sector suffers from low productivity, weak economies of scale and inadequate infrastructures. Fishing contributes to 3% of the GDP. The Philippines is one of the richest countries of the world in terms of minerals with an unexploited mineral wealth estimated at more than USD 840 billion. The Philippines reserves of copper, gold and zinc are among the largest of the world. 

The manufacturing sector contributes to around 30% of the GDP. Industrial food processing is one of  the Philippines' main manufacturing activities. The big industries are dominated by the production of cement, glass, chemicals products and fertilizers, iron, steel, and refined oil products.

The tertiary sector, which represents more than 50% of the GDP, has developed substantially especially in the fields of telecommunications, calling centers, and finance.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 35.2 14.6 50.3
Value Added (in % of GDP) 12.3 32.6 55.1
Value Added (Annual % Change) -0.2 11.6 7.2

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Philippine Peso (PHP) - Average Annual Exchange Rate For 1 USD 51.3146.1544.3247.6845.11

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about the Philippines on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
56.2/100
Position:
Mostly unfree
World Rank:
110/179
Regional Rank:
20/38

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

During these two last decades, the Philippines' economy, which was relatively closed, has evidently opened up, partly due to its ASEAN (Association of South-East Asian Nations) membership. Its three main export partners are the United States, Japan and China. The main export commodities are electronic and electrical equipment, nuclear reactors and boilers, vehicles and clothing. Its three main import partners are the United States, Japan and Singapore. The main import commodities are electronics and electrical equipment, mineral fuels and oil, nuclear reactors and boilers, iron, steel and vehicles. Traditionally, the Philippines has a deficit trade balance; however, under the effects of the global crisis, its trade balance deficit was reduced (and even transformed into a positive balance during a few months) due to the fact of a high fall on imports followed by a fast revival of exports.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 54,07857,99660,42045,87858,250
Exports of Goods (million USD) 47,41050,46649,07838,43651,432
Imports of Services (million USD) 6,2117,3918,3488,47710,597
Exports of Services (million USD) 6,4449,7669,71710,24812,377
Imports of Goods and Services (Annual % Change) 3.51.71.6-8.122.5
Exports of Goods and Services (Annual % Change) 12.66.7-2.7-7.821.0
Imports of Goods and Services (in % of GDP) 48.443.439.433.436.6
Exports of Goods and Services (in % of GDP) 46.643.336.932.234.8
Trade Balance (million USD) 6,7328,39112,8858,84210,384
Trade Balance (Including Service) (million USD) 6,5956,14211,7256,7288,438
Foreign Trade (in % of GDP) 94.986.676.365.671.4

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
Japan 15.2%
United States 14.7%
Singapore 14.2%
China 11.1%
Hong Kong 8.4%
See More Countries 36.3%
Main Suppliers
(% of Imports)
2010
Japan 12.5%
United States 10.8%
Singapore 9.3%
China 8.5%
Thailand 7.0%
See More Countries 51.9%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Electronic integrated circuits and microassembliesElectronic integrated circuits and microassemblies 27.1%
Automatic data processing machines and units...Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, n.e.s. 15.9%
Diodes, transistors and similar semiconductor...Diodes, transistors and similar semiconductor devices; photosensitive semiconductor devices, incl. photovoltaic cells whether or not assembled in modules or made-up into panels (excl. photovotaic generators); light emitting diodes; mounted piezo-electric crystals; parts thereof 5.0%
Parts and accessories (other than covers, carrying...Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of heading 8469 to 8472, n.e.s. 3.8%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 3.2%
See More Products 44.8%
Main Imports
(% of Imports)
2010
Electronic integrated circuits and microassembliesElectronic integrated circuits and microassemblies 21.0%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 9.5%
Parts and accessories (other than covers, carrying...Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of heading 8469 to 8472, n.e.s. 7.0%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 5.5%
RiceRice 2.8%
See More Products 54.2%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
Ministry of Economic Cooperation and Development
Ministry of Finance
Ministry of Agriculture 
Ministry of Commerce and Industry
Statistical Office
National statistical office
National Statistical Coordination Board
Central Bank
Central Bank of the Philippines
Stock Exchange
Philippines Stock Exchange
Search Engines
Cybertambayan
Edsa
Pinoy Search
Tanikalang Ginto
Economic Portals
Asiaweek
Philippine Business

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Political Outline

Executive Power
The President is both the head of the state and the head of the government. The President is elected by a popular vote to serve a single six-year term. He presides over and appoints the cabinet members. The President holds the executive powers which include the implementation of the law in the country and running the day-to-day affairs. The President is also the commander-in-chief of the armed forces.
Legislative Power
The legislature in the Philippines is bicameral. The parliament, called the Congress, consists of: the Senate (the upper house) having 24 seats with its members elected mostly by popular vote to serve six-year terms, and the House of Representatives (the lower house) having up to a maximum of 250 seats, with its members elected by popular vote to serve three-year terms. The President has the power to veto acts of the legislature, and in turn a supermajority (generally two—thirds) of legislators may act to override his veto. The people of the Philippines enjoy considerable political rights.
Main Political Parties
The Philippines has a multi-party system and political parties have diverse ideologies. As a result, parties generally work together to form coalition governments. The major political parties in the country are:
- Lakas-CMD (Lakas-Christian Muslim Democrats)- a right-of-centre conservative political party;
- LP (Liberal Party) - liberals;
- NPC (Nationalist People's Coalition) – a nationalist left-wing party;
- LDP (Struggle of Filipino Democrats) – a union of democratic parties;
- AD (Democratic Action) - mainstream political party that advocates "non-traditional" means of politics.
Current Political Leaders
President: Benigno S. AQUINO III (since June 2010), Liberal Party.
Next Election Dates
Presidential: May 2016
Senate: May 2013
House of Representatives: 2013
 

Indicator of Freedom of the Press

World Rank:
156/178
Evolution:
34 places down compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Partly Free
Political Freedom:
4/7
Civil Liberties:
3/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012