Philippines

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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

The Philippine economy has strengthened in recent years, a fact which protected it from the direct impacts of the global financial crisis, though without completely sparing it. After the 2008 decrease, growth increased by 1.5% in the second quater of 2009 and recession was thus able to be avoided.

This modest growth was increased by the support of the construction, mining, transport and services sectors, as well as by household consumptions and public spending. The constant money transfers from Filipinos working abroad ensures the maintenance of a surplus current account. The "economic resillience" plan, launched at the beginning of 2009, prioritizes post-crisis management through a controlled budget deficit in order to stimulate the economy and compensate for the effects of the crisis.

At the social level, the country is faced with a number of challenges: the increase in the amount of the population living under the poverty threshold in these recent years (33% in the population), the significant demographic growth, the high rate of unemployment and the contiunously persistent wealth distribution inequality.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	117.57	144.06	168.58	156.44	165.61e
GDP (constant prices, annual % change)	5.4	7.2e	4.6	-	1.0
GDP per capita (USD)	1,352	1,626	1,866e	1,698e	1,762e
Inflation rate (%)	6.2	2.8	9.3e	3.4e	4.5
Unemployment rate (% of the labor force)	-	-	7.4	-	-
Current Account (billions USD)	5.35	7.12e	4.23	3.54e	2.72
Current Account (in % of GDP)	4.5	4.9	2.5	2.3	1.6e

Source: IMF - World Economic Outlook Database ; CIA - The world factbook

Note: (e) Estimated data

Main sectors of industry

Agriculture employs approximately 40% of the labor force but contributes 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 3% to the GDP. The Philippines is one of the most mineral-rich countries in the world with an unexploited mineral wealth estimated at more than USD 840 billion. The Philippines' copper, gold and zinc reserves in are among the world's largest.

The manufacturing sector contributes around 30% of the GDP. Food processing is one of the Philippines' main activities. The bigger 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 telecommunications, call centers, and finance fields.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	37.0	14.9	48.1
Value added (in % of GDP)	14.1	31.7	54.2
Value added (annual % change)	4.9	7.1	8.1

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Philippine Peso (PHP) - Average annual exchange rate for 1 USD	56.04	55.09	51.31	46.15	44.47

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 56.8/100
Position:: mostly unfree
World Rank:: 104 out of 179
Regional Rank:: 20 out of 42

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

During these two last decades, the Philippine economy, which was relatively closed, has opened up noticeably partly due to its ASEAN (Association of South-East Asian Nations) membership. Its three main export partners are the United States, Japan and China. Main export commodities are electronic and electrical equipment, nuclear reactors and boilers, vehicles, clothing and clothes. Its three main import partners are the United States, Japan and Singapore. Main import commodities are electronic and electric equipment, mineral fuels and oil, nuclear reactors and boilers, iron, steel and vehicles. In 2007 and in 2008, the Philippines showed a trade balance deficit. This situation reversed itself because of the global economic crisis, the country is now showing a surplus. Even though exports have reduced, imports have declined strongly.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	41,190	44,478	48,036	53,258	57,723
Exports of goods (millions USD)	35,339	38,794	40,263	46,526	49,512
Imports of services (millions USD)	5,352	5,815	5,865	6,307	7,371
Exports of services (millions USD)	3,389	4,043	4,525	6,444	8,448
Imports of goods and services (annual % change)	10.8	5.8	2.4	1.9	-4.5
Exports of goods and services (annual % change)	4.9	15.0	4.8	13.4	5.6
Imports of goods and services (in % of GDP)	55.6	54.6	51.7	48.0	42.2
Exports of goods and services (in % of GDP)	49.6	50.9	47.6	47.3	42.6
Trade Balance (millions USD)	-5,851	-5,684	-7,773	-6,732	-8,211
Trade Balance (including service) (millions USD)	-7,814	-7,456	-9,113	-6,595	-7,134
Foreign trade (in % of GDP)	105.2	105.5	99.3	95.2	84.8

Source: World Bank

Main partner countries

Main customers (% of exports)	2007
United States	17.0%
Japan	14.5%
Hong Kong	11.5%
China	11.4%
Netherlands	8.2%
Singapore	6.2%
Malaysia	5.0%
Germany	4.3%
South Korea	3.5%
Thailand	2.8%
Belgium	1.3%
Australia	1.0%
Indonesia	1.0%
United Kingdom	0.9%
Vietnam	0.9%
France	0.5%
Canada	0.5%
India	0.5%
United Arab Emirates	0.4%
Italy	0.4%
See more countries	37.4%

Main suppliers (% of imports)	2007
United States	14.0%
Japan	12.4%
Singapore	11.1%
China	7.3%
Saudi Arabia	6.2%
South Korea	5.9%
Thailand	4.1%
Malaysia	4.1%
Hong Kong	4.0%
Ireland	2.5%
Indonesia	2.3%
United Arab Emirates	2.2%
Germany	2.2%
Vietnam	1.6%
Australia	1.3%
France	1.1%
India	0.9%
Netherlands	0.8%
Argentina	0.7%
United Kingdom	0.6%
See more countries	49.0%

Source: Comtrade

Main products

Main exports (% of exports)	2007
Commodities not specified according to kindCommodities not specified according to kind	34.7%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	22.9%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	12.3%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	3.6%
Copper and articles thereofCopper and articles thereof	2.9%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	2.4%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	1.6%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.5%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	1.5%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.4%
Ores, slag and ashOres, slag and ash	1.4%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	1.3%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	0.9%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.8%
Iron and steelIron and steel	0.8%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.7%
Plastics and articles thereofPlastics and articles thereof	0.7%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.7%
Rubber and articles thereofRubber and articles thereof	0.6%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.6%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.5%
Articles of iron or steelArticles of iron or steel	0.5%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.4%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.3%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.3%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.3%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.3%
Organic chemicalsOrganic chemicals	0.3%
Sugars and sugar confectionerySugars and sugar confectionery	0.3%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.3%
Miscellaneous chemical productsMiscellaneous chemical products	0.2%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.2%
Ceramic productsCeramic products	0.2%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.2%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.1%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.1%
Lac; gums, resins and other vegetable saps and...Lac; gums, resins and other vegetable saps and extracts	0.1%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.1%
Glass and glasswareGlass and glassware	0.1%
Manufactures of straw, of esparto or of other...Manufactures of straw, of esparto or of other plaiting materials; basketware and wickerwork	0.1%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.1%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.1%
FertilizersFertilizers	0.1%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.1%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.1%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.1%
See more products	23.7%

Main imports (% of imports)	2007
Commodities not specified according to kindCommodities not specified according to kind	24.7%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	17.1%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	16.5%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	10.3%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	3.2%
Plastics and articles thereofPlastics and articles thereof	2.2%
Iron and steelIron and steel	2.0%
CerealsCereals	2.0%
Organic chemicalsOrganic chemicals	1.4%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	1.2%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	1.1%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	1.1%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	1.0%
Pharmaceutical productsPharmaceutical products	0.9%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.9%
Articles of iron or steelArticles of iron or steel	0.8%
Copper and articles thereofCopper and articles thereof	0.7%
Ores, slag and ashOres, slag and ash	0.7%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.7%
Miscellaneous chemical productsMiscellaneous chemical products	0.7%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.6%
FertilizersFertilizers	0.5%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.5%
Rubber and articles thereofRubber and articles thereof	0.4%
CottonCotton	0.4%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.4%
Aluminium and articles thereofAluminium and articles thereof	0.4%
Man-made staple fibresMan-made staple fibres	0.4%
Meat and edible meat offalMeat and edible meat offal	0.4%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.4%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.3%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.3%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.3%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.3%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.3%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.3%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.2%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.2%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.2%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.2%
Glass and glasswareGlass and glassware	0.2%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.2%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.2%
Man-made filamentsMan-made filaments	0.2%
Sugars and sugar confectionerySugars and sugar confectionery	0.2%
Ships, boats and floating structuresShips, boats and floating structures	0.1%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.1%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.1%
Ceramic productsCeramic products	0.1%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.1%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.1%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.1%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.1%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.1%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.1%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.1%
Zinc and articles thereofZinc and articles thereof	0.1%
See more products	28.3%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

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

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: Gloria MACAPAGAL-ARROYO (since January 2001, re-elected in June 2004) Lakas-CMD
Next election dates: Presidential: May 2010
Senate: May 2013
House of Representatives: May 2010

Indicator of freedom of the press

World Rank:: 139/173
Evolution:: 11 places down compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Partly Free
Political freedom:: 4/7
Civil liberties:: 3/7

Map of freedom 2007
Source: Freedom House

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