Philippines Economy
Is Philippines a wealthy country?
The Philippine economy is characterized by a diverse range of sectors contributing to its growth, including agriculture, manufacturing, services, and increasingly, information technology and business process outsourcing (IT-BPO).
GDP Growth: The Philippine economy has been experiencing steady growth over the past few years, although it faced challenges due to the COVID-19 pandemic. Prior to the pandemic, the Philippines consistently posted GDP growth rates averaging around 6%, making it one of the fastest-growing economies in Asia.
Services Sector: The services sector is a significant driver of the Philippine economy, contributing the largest share to GDP. This includes IT-BPO, tourism, retail, and financial services. The IT-BPO industry, in particular, has been a major contributor to economic growth, leveraging the country's skilled English-speaking workforce.
Remittances: The Philippines receives a substantial amount of remittances from overseas Filipino workers (OFWs), particularly from countries like the United States, Saudi Arabia, and the United Arab Emirates. These remittances play a crucial role in supporting household consumption and driving domestic demand.
Manufacturing: The manufacturing sector is another important contributor to the Philippine economy, encompassing industries such as electronics, automotive, and food processing. The government has been implementing initiatives to attract more investment in manufacturing and improve competitiveness.
Agriculture: Agriculture remains a significant sector, employing a large portion of the population, particularly in rural areas. However, it has faced challenges such as land reform issues, natural disasters, and low productivity. Efforts to modernize the sector and improve productivity are ongoing.
Infrastructure Development: Infrastructure development has been a priority for the Philippine government, with ambitious plans aimed at improving connectivity, transportation, and logistics across the archipelago. Projects such as roads, bridges, airports, and seaports are underway to support economic growth and development.
Challenges: Despite its growth potential, the Philippine economy faces various challenges, including income inequality, poverty, corruption, and bureaucratic red tape. Addressing these challenges is crucial for sustaining inclusive growth and development.
Government Policies: The government has been implementing various policies and reforms to promote investment, improve the business climate, and boost economic competitiveness. These include tax reforms, ease of doing business initiatives, and initiatives to attract foreign direct investment.
Regional Disparities: There are significant regional disparities in the Philippine economy, with the capital region of Metro Manila and surrounding areas experiencing faster growth compared to rural and less developed regions. Efforts to promote more inclusive growth and development are needed to address these disparities.
Philippines Economy Data
What is the GDP of Philippines?
| Currency Name and Code | Philippines Peso (PHP) |
| GDP - Gross Domestic Product (PPP) | $871,560,000,000 (USD) |
| GDP - official exchange rate | $299,300,000,000 (USD) |
| GDP - real growth rate | 6% |
| GDP Per Capita | $7,500.00 (USD) |
| GDP by Sector- agriculture | 10.7% |
| GDP by Sector- Industry | 31.6% |
| GDP by Sector- services | 57.6% |
| GDP - composition, by end use |
household consumption: 71.5% government consumption: 10.2% investment in fixed capital: 21.7% investment in inventories: -0.6% exports of goods and services: 28% imports of goods and services: -30.8% |
| Population Below Poverty Line | 32.9% |
| Inflation Rate | 3.8% |
| Labor Force | 38,900,000 |
| Labor Force By Occupation- agriculture | 32% |
| Labor Force By Occupation- industry | 15% |
| Labor Force By Occupation- services | 53% |
| Unemployment Rate | 7.3% |
| Fiscal Year | calendar year |
| Annual Budget | $26,840,000,000 (USD) |
| Budget Surplus or Deficit - percent of GDP | -1.8% |
| Public Debt (% of GDP) | 77.4% |
| Taxes and other revenues - percent of GDP | 14.3% |
| Major Industries | electronics assembly, textiles, pharmaceuticals, chemicals, wood products, food processing, petroleum refining, fishing |
| Industrial Growth Rate | 12.1% |
| Agriculture Products | rice, coconuts, corn, sugarcane, bananas, pineapples, mangoes, pork, eggs, beef, fish |
| Exchange Rate per US Dollar | Philippine peso (PHP) |
| Commercial Bank Prime Lending Rate | 5.8% |