The Philippines is classified by World Bank as a developing economy and one of the most dynamic in the Asia-Pacific region. Way back in 2013, Motoo Konishi even mentioned on his press statement that it is no longer the sick man of Asia, and I quote:
The Philippines is no longer the sick man of Asia, but the rising tiger. There is macroeconomic stability. The government’s finances are sound and improving. The fight against corruption is paying off. There is greater transparency. The leadership’s commitment to good governance is inspiring confidence in the country’s prospects. As a result, the Philippine economy is going strong despite the global uncertainty. This is the most opportune time to speed up reforms for achieving inclusive growth or growth that creates more decent jobs and reduces poverty. (Source)
The country has experienced some significant economic growth and transformation through the years, with an average annual GDP growth rate of 6% and is looking to a strong growth forecast over the medium-term outlook. Thanks to a solid economic fundamentals and a very competitive, young workforce that are the main driving force to the growth momentum of the economy. The size of the Philippines GDP is set to reach USD one trillion by 2033. (Source)
Here are some key facts:
Population
The population of the Philippines is 113 million with a median age of 25.7 years.
Average Education Level
Accordingly, statistics by the United Nations in 2019 indicated that the Philippines has the highest literacy rate in Southeast Asia at 97.95% for those aged 15 or over; 98.9% and 97% among females and males respectively.
Unemployment rate is continuing to decline. Per statistics, the unemployment rate of December 2022 was 4.3%, the second lowest since 2005, and also better than pre-pandemic levels when the Philippines’ unemployment rate was at 5.3% in 2018 and 5.1% in 2019. It's also a significant drop from 7.8% in October 2021 and a record high of 17.6% in April 2020.
GDP (PPP) is $1.0 trillion, with a 3.1% 5-year compound annual growth rate.
Its economy had a growth rate of 7.6% in 2022, the fastest rate of economic growth recorded by the country since 1976. It has grown alongside other countries like including Saudi Arabia, United Arab Emirates, as well as other rapidly growing Asian economies such as Malaysia, Vietnam and India.
Average Salary
Per Statista, the average monthly salary in the Philippines as of 2020 was approximately PHP 45,000 and the annual average was PHP535,000.
Currency and Central Bank
The Philippine peso (PHP). It is subdivided into 100 centavos, the largest paper bill amount being PHP 1,000.
The Bangko Sentral ng Pilipinas (BSP) is the country's central bank. It was established in 1993 in accordance with Republic Act 7653 or the New Central Bank Act of 1993 and was later amended under Republic Act 11211 or the New Central Bank Act of 2019.
Inflation
Average inflation in the country was at 3.9% in 2021, 5.8% in 2022 and reached a 14-year high of 8.7% in January 2023. The Bangko Sentral ng Pilipinas targets the range of 2% to 4%.
But despite inflation pressures, the country's economic growth is expected to remain on a healthy expansive mode with a rising domestic demand and a recovery in services particularly tourism. International Monetary Fund (IMF) has projected a real GDP for 2023 of 5% and the projected consumer prices at 4.3% (Source)
During the pandemic, the government has implemented certain measures to combat inflation, amongst which is the distribution of cash aid to citizens, the impact of which is yet to be seen in the country's effort to address inflation.
The country's economy is continually growing thanks to the various industries which are the driving force towards its growth, re:
Services sector
This contributes the most to the country's Gross Domestic Product growth. In 2021, it contributed about 61.05 percent of the nation's GDP and accounts to 57% of employment. Thanks to tourism, business process outsourcing (BPO) and remittances from overseas Filipino workers.
As of 2018, the services sector represents between 38% and 69% of ASEAN Member States' GDP, with Singapore having the highest share of services to GDP among all ASEAN countries and the Philippines being the third on the list.
According to the Philippine Statistics Authority, this sector contributed 61.1% to the country's GDP in the first quarter of 2023. (Source)
The Asian Development Bank, also reported that the share of this sector in GDP has exceeded that of the industry sector since the mid-1980s, growing from 36% to 55% in 2010. Statista also showed that this sector accounted for 56.04% of the Philippine GDP in 2021.
This goes to show that it is the significant contributor to the country's economy accounting for over 50% of the GDP.
Industry sector
This is the second largest contributor to the GDP and almost one-fifth of the country's workforce are on this sector. Various industries within this sector include manufacturing (mining and mineral processing, pharmaceuticals, shipbuilding, electronics, and semiconductors), construction, agribusiness and telecommunications.
In 2021, this industry contributed approximately 28.89 percent to the country's GDP.
Agricultural sector
This industry employs around 25% of the labor workforce although this sector's contribution to the GDP has declined in recent years. Major agricultural products include coconut, sugar and rice. In 2021, the share of agriculture in the Philippines' gross domestic product was 10.07 percent.
(Source)Trade (Exports and Imports)
The country is currently ranked 46th globally in terms of total exports. Exporting products such as integrated circuits, office machine parts, insulated wire, semiconductor devices, and electrical transformers as its main export products. Its top export partners include China, the US, Japan, Hong Kong, and Singapore.
It is the 37th in total imports and its top import products are integrated circuits, refined petroleum, cars, crude petroleum, and broadcasting equipment. Its import partners include China, Japan, South Korea, the US and Singapore.
(Source)
Personal Conclusion
The county's economy may not look as robust and thriving from some people's perspective but I believe the statistics that show it had been growing slowly and quite steadily, riding gracefully through the economic tides. Like any other countries, the Philippine economy have also been challenged during the pandemic and still is today but things will only get better, won't they?
(Disclaimer: For infotainment only.)
Images sourced as acknowledged above. 26th May 2023/14:00ph
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