Philippines Economy Profile 2009

Economy - overview

Economic growth has averaged 5% since President MACAPAGAL-ARROYO took office in 2001. MACAPAGAL-ARROYO averted a fiscal crisis by pushing for new revenue measures and, until recently, tightening expenditures. Declining fiscal deficits, tapering debt and debt service ratios, and increased spending on infrastructure and social services bolstered optimism over Philippine economic prospects. Although the general macroeconomic outlook improved significantly in recent years, the economy still faces several long term challenges. The Philippines must maintain the reform momentum in order to catch up with regional competitors, improve employment opportunities, and alleviate poverty. The Philippines will need still higher, sustained growth to make progress in alleviating poverty, given its high population growth and unequal distribution of income. The Philippine economy grew at its fastest pace in three decades in 2007 with real GDP growth exceeding 7%, but growth slowed to 3.8% in 2008 as a result of the world financial crisis. High government spending, a relatively small trade sector, a resilient service sector, and large remittances from the four- to five-million Filipinos who work abroad have helped cushion the economy from the current financial crisis.

GDP (purchasing power parity)

$317.5 billion (2008 est.)
$305.8 billion (2007 est.)
$285.6 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$168.6 billion (2008 est.)

GDP - real growth rate

3.8% (2008 est.)
7.1% (2007 est.)
5.3% (2006 est.)

GDP - per capita (PPP)

$3,300 (2008 est.)
$3,200 (2007 est.)
$3,100 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 14.7%
industry: 31.6%
services: 53.7% (2008 est.)

Population below poverty line

30% (2003 est.)

Labor force

36.81 million (2008 est.)

Labor force - by occupation

agriculture: 35%
industry: 15%
services: 50% (2008 est.)

Unemployment rate

7.4% (2008 est.)
7.3% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 2.4%
highest 10%: 31.2% (2006)

Distribution of family income - Gini index

45.8 (2006)
46.6 (2003)

Investment (gross fixed)

14.8% of GDP (2008 est.)

Budget

revenues: $27.05 billion
expenditures: $28.58 billion (2008 est.)

Public debt

56.3% of GDP (2008 est.)
74.2% of GDP (September 2004 est.)

Inflation rate (consumer prices)

9.3% (2008 est.)
2.8% (2007 est.)

Central bank discount rate

6% (31 December 2008)
4.28% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
8.69% (31 December 2007)

Stock of money

$22.53 billion (31 December 2008)
$21.27 billion (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$65.85 billion (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$65.66 billion (31 December 2007)

Industries

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

Industrial production growth rate

5% (2008 est.)

Electricity - production

56.51 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 55.6%
hydro: 17.5%
nuclear: 0%
other: 26.9% (2001)

Electricity - consumption

47.04 billion kWh (2006 est.)

Electricity - exports

0 kWh (2007)

Electricity - imports

0 kWh (2007)

Oil - production

23,930 bbl/day (2007 est.)

Oil - consumption

340,100 bbl/day (2006 est.)

Oil - imports

355,800 bbl/day (2005)

Oil - exports

41,160 bbl/day (2005)

Oil - proved reserves

138.5 million bbl (1 January 2008 est.)

Natural gas - production

2.2 billion cu m (2006 est.)

Natural gas - consumption

2.2 billion cu m (2006 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

98.54 billion cu m (1 January 2008 est.)

Current Account Balance

$4.227 billion (2008 est.)
$7.119 billion (2007 est.)

Agriculture - products

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

Exports

$48.2 billion (2008 est.)
$49.51 billion (2007 est.)

Exports - commodities

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

Exports - partners

China 25.7%, US 12.7%, Japan 12.4%, Hong Kong 8.7%, Singapore 6.9%, Malaysia 4.4% (2008)

Imports

$60.78 billion (2008 est.)
$57.9 billion (2007 est.)

Imports - commodities

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

Imports - partners

Japan 14.2%, US 11.8%, China 11.4%, Singapore 10.3%, Saudi Arabia 6%, South Korea 4.8%, Thailand 4.7% (2008)

Reserves of foreign exchange and gold

$37.55 billion (31 December 2008 est.)
$33.75 billion (31 December 2007 est.)

Debt - external

$61.41 billion (31 December 2008 est.)
$61.78 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$21.4 billion (31 December 2008 est.)
$19.88 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$5.821 billion (31 December 2008 est.)
$5.584 billion (31 December 2007 est.)

Market value of publicly traded shares

$52.1 billion (31 December 2008)
$103.2 billion (31 December 2007)
$68.38 billion (31 December 2006)

Economic aid - recipient

ODA, $451.4 million in commitments (2006)

Currency (code)

Philippine peso (PHP)

Currency (code)

PHP

Exchange rates

Philippine pesos (PHP) per US dollar - 44.439 (2008 est.), 46.148 (2007), 51.246 (2006), 55.086 (2005), 56.04 (2004)

Fiscal year

calendar year