Philippines Economy Profile 2013

Economy - overview

Philippine GDP grew 7.6% in 2010, spurred by consumer demand, a rebound in exports and investments, and election-related spending, before cooling to 3.9% in 2011, and 4.8% in 2012. The economy weathered the 2008-09 global recession better than its regional peers due to minimal exposure to troubled international securities, lower dependence on exports, relatively resilient domestic consumption, large remittances from four- to five-million overseas Filipino workers, and a growing business process outsourcing industry. Economic growth in the Philippines averaged 4.5% during the MACAPAGAL-ARROYO administration (January 2001 - June 2010). Despite this growth, however, poverty worsened during her presidency. The AQUINO administration is working to reduce the government deficit from 3.9% of GDP, when it took office, to 2% of GDP in 2013. The government has had little difficulty issuing debt, both locally and internationally, to finance the deficits. The AQUINO Administration reduced public debt to below 50% of GDP and obtained several ratings upgrades on sovereign debt so that the Philippines is now close to investment grade. However, the lack of government spending, especially on infrastructure, was one of several factors which slowed GDP growth in the second half of 2011, leading the government to announce a stimulus effort and increased public spending on infrastructure in 2012. AQUINO's first budget emphasized education, health, conditional cash transfers for the poor, and other social spending programs, relying mostly on the private sector to finance important infrastructure projects. Weak tax collection, exacerbated by new tax breaks and incentives, has limited the government's ability to address major challenges. The AQUINO administration has vowed to focus on improving tax collection efficiency, rather than imposing new taxes, as a part of its good governance platform. The economy still faces several long-term challenges, including reliance on energy imports and foreign demand for overseas Filipino workers.

GDP (purchasing power parity)

$416.7 billion (2012 est.)
$397.5 billion (2011 est.)
$382.5 billion (2010 est.)
note: data are in 2012 US dollars

GDP (official exchange rate)

$240.7 billion (2012 est.)

GDP - real growth rate

4.8% (2012 est.)
3.9% (2011 est.)
7.6% (2010 est.)

GDP - per capita (PPP)

$4,300 (2012 est.)
$4,100 (2011 est.)
$4,100 (2010 est.)
note: data are in 2012 US dollars

GDP - composition by sector

agriculture: 12.4%
industry: 31.3%
services: 56.4% (2012 est.)

Population below poverty line

26.5% (2009 est.)

Labor force

40.73 million (2012 est.)

Labor force - by occupation

agriculture: 33%
industry: 15%
services: 52% (2010 est.)

Unemployment rate

6.9% (2012 est.)
7% (2011 est.)

Unemployment, youth ages 15-24

total: 17.4%
male: 16.2%
female: 19.3% (2009)

Household income or consumption by percentage share

lowest 10%: 2.6%
highest 10%: 33.6% (2009 est.)

Distribution of family income - Gini index

45.8 (2006)
46.6 (2003)

Investment (gross fixed)

19.7% of GDP (2012 est.)

Budget

revenues: $35.16 billion
expenditures: $41.57 billion (2012 est.)

Taxes and other revenues

14.6% of GDP (2012 est.)

Budget surplus (+) or deficit (-)

-2.7% of GDP (2012 est.)

Public debt

50.6% of GDP (2012 est.)
50.9% of GDP (2011 est.)
note: data cover central government debt, and includes debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are not sold at public auctions

Inflation rate (consumer prices)

3.4% (2012 est.)
4.7% (2011 est.)

Central bank discount rate

3.8% (31 December 2010 est.)
3.5% (31 December 2009 est.)

Commercial bank prime lending rate

7.2% (31 December 2012 est.)
6.66% (31 December 2011 est.)

Stock of narrow money

$36.67 billion (31 December 2012 est.)
$32.18 billion (31 December 2011 est.)

Stock of money

$24.32 billion (30 November 2009)
$22.53 billion (31 December 2008)

Stock of quasi money

$55.71 billion (30 November 2009)
$65.85 billion (31 December 2007)

Stock of broad money

$132.5 billion (31 December 2011 est.)
$126 billion (31 December 2010 est.)

Stock of domestic credit

$125.5 billion (31 December 2012 est.)
$112.6 billion (31 December 2011 est.)

Market value of publicly traded shares

$202.3 billion (31 December 2010)
$130.5 billion (31 December 2009)
$85.63 billion (31 December 2008)

Agriculture - products

sugarcane, coconuts, rice, corn, bananas, cassavas, pineapples, mangoes; pork, eggs, beef; fish

Industries

electronics assembly, garments, footwear, pharmaceuticals, chemicals, wood products, food processing, petroleum refining, fishing

Industrial production growth rate

1.1% (2011 est.)

Current Account Balance

$12.15 billion (2012 est.)
$7.078 billion (2011 est.)

Exports

$52.17 billion (2012 est.)
$47.23 billion (2011 est.)

Exports - commodities

semiconductors and electronic products, transport equipment, garments, copper products, petroleum products, coconut oil, fruits

Exports - partners

Japan 18.5%, US 14.8%, China 12.7%, Singapore 8.9%, Hong Kong 7.7%, South Korea 4.6% (2011)

Imports

$63.42 billion (2012 est.)
$62.68 billion (2011 est.)

Imports - commodities

electronic products, mineral fuels, machinery and transport equipment, iron and steel, textile fabrics, grains, chemicals, plastic

Imports - partners

Japan 10.8%, US 10.8%, China 10.1%, Singapore 8.1%, South Korea 7.3%, Thailand 5.8%, Saudi Arabia 5.4%, Malaysia 4.4% (2011)

Reserves of foreign exchange and gold

$80.58 billion (31 December 2012 est.)
$75.3 billion (31 December 2011 est.)

Debt - external

$68.39 billion (31 December 2012 est.)
$72.22 billion (31 December 2011 est.)

Stock of direct foreign investment - at home

$28.58 billion (31 December 2012 est.)
$27.58 billion (31 December 2011 est.)

Stock of direct foreign investment - abroad

$6.69 billion (31 December 2012 est.)
$6.59 billion (31 December 2011 est.)

Exchange rates

Philippine pesos (PHP) per US dollar -
42.56 (2012 est.)
43.313 (2011 est.)
45.11 (2010 est.)
47.68 (2009)
44.439 (2008)

Fiscal year

calendar year