Capital City: Manila
	It is %T:%M %A in Manila

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Economic trends

Private consumption in Philippines will continue to be the main driving force behind GDP growth; which reached 5.4% in 2006 and 6.3% in 2007. Buoyant remittances from Filipinos working overseas will ensure that the current-account remains in surplus. IMF forecasts a GDP growth of 5.8% in 2008 in spite of the talks about constitutional reforms and fragile political situation. However, this growth is not sufficient to curb the country's high level of poverty. 40% of the population earns than 2 dollars a day and unemployment affects more than 10% of the active population. The inflation has reduced to a rate of 3.0% in 2007.

Main branches of industry

The agricultural sector employs nearly 40% of the work force but contributes less than 20% to GDP. Philippines is one of the leading producer of rice and coconut in the world. However, the agricultural sector generally suffers from low productivity, low economies-of-scale, and inadequate infrastructure support. Fishing contributes 3% to the GDP. The Philippines is one of the world’s most highly mineralized countries, with untapped mineral wealth estimated at more than $840 billion. Philippine copper, gold and zinc deposits are among the largest in the world. The manufacturing sector contributes 25% to the GDP; with electronics and food-processing being the two main activities. Heavier industries are dominated by the production of cement, glass, chemicals & fertilizers, iron and steel, and refined petroleum products. The services sector has grown substantially (especially telecommunications, call centres, and finance) and accounts for more than 50% of the GDP.

International trade

Over the last two decades, the relatively closed Philippine economy has opened significantly. The share of foreign trade in country’s GDP is around 95%. Philippines is also a member of ASEAN (Association of Southeast Asian Nations). Its top three export partners are: the USA, Japan and China. The commodities mainly exported are electric and electronic equipment, nuclear reactors & boilers, vehicles, and apparel & clothing. The top three import partners are: the USA, Japan and Singapore. The commodities mainly imported are electronic and electric equipment, mineral fuels & oils, nuclear reactors and boilers, iron and steel and vehicles.