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 in 2009, but without sparing it totally. In spite of unfavorable international context, growth reached 7.2% in 2013, thanks to domestic consumption, employment and vigorous FDI flows. Growth of 6.5%-7.5% of the GDP is expected in 2014.
In November 2014, the new "Asian Tiger" was hhit by the typhoon Haiyan, one of the most powerful since records began, which cost many lives and caused great demange to the infrastructure and agricultural sector. The economy is nevertheless in a relatively good shape and the country has large foreign exchange reserves. The government's priority remains fighting against poverty and unemployment.The 2014 budget, which has increased by 13% compared to the 2013 budget, introduces many reform measures in the area of public spending, trying to make the budget process more efficient and transparent (Performance informed budget). A great part of the budget has been allocated to social services, including subsidies and funding for school and healthcare establishments. Paving the national roads, providing technical support to farmers, promoting tourism and preventing and managing natural catastrophes are also part of the agenda.
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), in 2009 the crisis aggravated the unemployment rate (7% of the active population), although it is now decreasing, there is a significant demographic growth and the inequality in wealth distribution persists.
|Main Indicators||2011||2012||2013||2014||2015 (e)|
|GDP (billions USD)||224.14||250.24||272.07||289.69e||330.26|
|GDP (Constant Prices, Annual % Change)||3.7||6.8||7.2e||6.2||6.3|
|GDP per Capita (USD)||2,379||2,612||2||2,913e||3,256|
|General Government Balance (in % of GDP)||-0.2||-0.7||-0.3||-0.7||-1.5|
|General Government Gross Debt (in % of GDP)||41.4||40.6||39.1e||36.3||33.9|
|Inflation Rate (%)||4.7||3.2||2.9||4.5||3.9|
|Unemployment Rate (% of the Labor Force)||7.0||7.0||7.1||6.9||6.8|
|Current Account (billions USD)||5.65||6.95||9.42e||9.18e||8.55|
|Current Account (in % of GDP)||2.5||2.8||3.5e||3.2e||2.6|
Source: IMF - World Economic Outlook Database , Last Available Data
Note: (e) Estimated Data
The agricultural sector employs about 35% of the labor force but contributes to less than 13% 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 55% 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)||32.2||15.4||52.5|
|Value Added (in % of GDP)||11.2||31.1||57.7|
|Value Added (Annual % Change)||10.5||9.3||-|
Source: World Bank - Last Available Data.
|Philippine Peso (PHP) - Average Annual Exchange Rate For 1 USD||47.68||45.11||43.31||42.23||42.45|
Source: World Bank - Last Available Data.
The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.
The business rankings model measures the quality or attractiveness of the business environment in the 82 countries covered by The Economist Intelligence Unit’s Country Forecast reports. It examines ten separate criteria or categories, covering the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise and competition, policy towards foreign investment, foreign trade and exchange controls, taxes, financing, the labour market and infrastructure.
During these two last decades, the Philippines' economy, which was relatively closed, has opened up, partly due to itsASEAN (Association of South-East Asian Nations) membership. Trade represents almost 60% of the country's GDP (average 2010-2012). 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, there is a trend towards the reduction of this deficit because of exports rising more quickly than imports. IN 2013, imports declined by 0.7%, reducing the deficit to 7.7b USD, against 10b in 2012. Trade should accelerate in 2014.
|Foreign Trade Indicators||2009||2010||2011||2012||2013|
|Imports of Goods (million USD)||45,878||58,468||63,693||65,350||64,980|
|Exports of Goods (million USD)||38,436||51,496||48,305||51,995||53,977|
|Imports of Services (million USD)||8,477||11,129||12,066||14,093||15,752|
|Exports of Services (million USD)||10,248||14,095||17,711||18,478||22,279|
|Imports of Goods and Services (Annual % Change)||-8.1||22.5||-0.6||4.9||5.4|
|Exports of Goods and Services (Annual % Change)||-7.8||21.0||-2.5||8.5||-1.1|
|Imports of Goods and Services (in % of GDP)||33.4||36.6||35.7||33.9||32.0|
|Exports of Goods and Services (in % of GDP)||32.2||34.8||32.0||30.8||27.9|
|Trade Balance (million USD)||-13,860||-16,859||-20,428||-18,926||-17,702|
|Trade Balance (Including Service) (million USD)||-8,962||-11,094||-13,866||-12,747||-11,274|
|Foreign Trade (in % of GDP)||65.6||71.4||67.7||64.7||59.9|
Source: WTO - World Trade Organization ; World Bank , Last Available Data
(% of Exports)
|See More Countries||36.5%|
(% of Imports)
|See More Countries||52.9%|
Source: Comtrade, Last Available Data
|- bn USD of products exported in 2013|
|Electronic integrated circuits and microassembliesElectronic integrated circuits and microassemblies||17.4%|
|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.||6.5%|
|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||6.3%|
|Builders' joinery and carpentry, of wood, incl....Builders' joinery and carpentry, of wood, incl. cellular wood panels, assembled parquet panels, shingles and shakes, of wood (excl. plywood panelling, blocks, strips and friezes for parquet flooring, not assembled, and pre-fabricated buildings)||5.6%|
|Electrical transformers, static converters, e.g....Electrical transformers, static converters, e.g. rectifiers, and inductors; parts thereof||3.2%|
|See More Products||61.0%|
|- bn USD of products imported in 2013|
|Electronic integrated circuits and microassembliesElectronic integrated circuits and microassemblies||16.3%|
|Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude||10.2%|
|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||8.1%|
|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.||3.3%|
|Powered aircraft e.g. helicopters and aeroplanes;...Powered aircraft e.g. helicopters and aeroplanes; spacecraft, incl. satellites, and suborbital and spacecraft launch vehicles||3.1%|
|See More Products||59.0%|
Source: Comtrade, Last Available Data
|- bn USD of services exported in 2012|
|Miscellaneous business,...Miscellaneous business, professional, and technical services||52.87%|
|Legal, accounting, management...Legal, accounting, management consulting, and public relations||52.68%|
|Business and management...Business and management consulting and public relations services||52.68%|
|Research and developmentResearch and development||0.11%|
|Advertising, market research,...Advertising, market research, and public opinion polling||0.08%|
|Merchanting and other trade-related...Merchanting and other trade-related services||0.27%|
|Operational leasing servicesOperational leasing services||0.14%|
|Personal travelPersonal travel||22.06%|
|Education-related expenditureEducation-related expenditure||0.20%|
|Health-related expenditureHealth-related expenditure||0.13%|
|Business travelBusiness travel||0.13%|
|Computer servicesComputer services||11.25%|
|Air transportAir transport||8.26%|
|Sea transportSea transport||0.01%|
|Telecommunications servicesTelecommunications services||2.69%|
|Construction abroadConstruction abroad||0.61%|
|Freight insuranceFreight insurance||0.24%|
|Audiovisual and related servicesAudiovisual and related services||0.26%|
|Embassies and consulatesEmbassies and consulates||0.07%|
|Other personal, cultural, and...Other personal, cultural, and recreational services||0.18%|
|Franchises and similar rightsFranchises and similar rights||0.04%|
|- bn USD of services imported in 2012|
|Personal travelPersonal travel||42.67%|
|Education-related expenditureEducation-related expenditure||0.24%|
|Health-related expenditureHealth-related expenditure||0.15%|
|Business travelBusiness travel||0.72%|
|Air transportAir transport||31.89%|
|Miscellaneous business,...Miscellaneous business, professional, and technical services||9.02%|
|Legal, accounting, management...Legal, accounting, management consulting, and public relations||8.61%|
|Business and management...Business and management consulting and public relations services||8.61%|
|Advertising, market research,...Advertising, market research, and public opinion polling||0.20%|
|Research and developmentResearch and development||0.20%|
|Operational leasing servicesOperational leasing services||1.70%|
|Franchises and similar rightsFranchises and similar rights||3.50%|
|Freight insuranceFreight insurance||1.95%|
|Telecommunications servicesTelecommunications services||1.34%|
|Computer servicesComputer services||1.10%|
|Construction in the compiling...Construction in the compiling economy||0.29%|
|Audiovisual and related servicesAudiovisual and related services||0.15%|
|Embassies and consulatesEmbassies and consulates||2.06%|
|Other personal, cultural, and...Other personal, cultural, and recreational services||0.09%|
Source: Comtrade, Last Available Data
The world rankings, published annually, measures the violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire sent to partner organizations,150 RWB correspondents, journalists, researchers, jurists and activists of human rights, including the main criteria - 44 in total - to assess the situation of press freedom in a given country. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).
The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.
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