Economy

According to the International Monetary Fund (IMF), the economy of the Philippines is the 13th largest economy in Asia by purchasing power parity.  Growth in 2006 and 2007  was a robust 7.1%, followed by a slowdown in 2008 to 3.8% and 0.9% in 2009. In 2010, it grew to 7.3%,which is considered to be the strongest performance since the end of the Marcos' administration.

 

 

Year

GDP
in millions of PHP
(current prices)

PHP:US$

Implied PPP
PHP:US$
(current)

GDP per capita
as % of US
(current prices)

1980

243,749

7.51

4.044

5.48

1985

571,883

18.60

7.902

3.18

1990

1,074,510

24.32

9.975

3.1

1995

1,905,951

25.23

14.076

3.97

2000

3,354,727

44.19

18.789

2.8

2005

5,444,038

55.09

21.755

2.72

2006

6,031,164

51.31

22.158

3.01

2007

6,647,338

46.01

22.172

3.48

2008

7,423,213

44.32

23.346

3.91

2009

7,669,143

47.64

23.620

3.76

Table: GDP growth rate

 

A big chunk of the economy is generated by the Overseas Filipino Workers or OFWs. They make up more then 11% of the country’s GDP.  Agriculture and Forestry provides around 20% of the GDP but employs more than a third of the labor force. Main export products are rice, corn, coconuts, sugar cane, bananas, pineapples, cassava and mangoes.

The manufacturing sector contributes to around 30% of the GDP and consists of  production of chemicals, pharmaceuticals, clothing and textiles, and petroleum products.The Philippine Government is stimulating the production of more value added products like semiconductors by appointing economic free zones with special benefits for investors. Most of the manufacturing sector is concentrated around Manila and Cebu. Another fast growing sector is the outsourcing business. Currently, it accounts for almost 5% of the GDP and employing over 400,000 employees. As an English speaking country, lots of call center businesses focusing on clients in the United States have sprung up in the recent years.

The Philippines is rich in mineral resources and its gold and copper deposits are among the largest in the world. Further, it has large deposits of silver, nickel and sulfur. Despite its rich mineral deposits, the Philippine mining industry accounts for just over 1% of GDP.