Philippines Economy 2008

Economy - overview:
The Philippine economy is growing at its fastest pace in 25 years with real GDP growth expected to exceed 7% in 2007. Higher government spending contributed to the economy's acceleration, but consumer spending and large remittances from the millions of Filipinos who work abroad have played an increasingly important role in the economy. The economy has averaged 5% real growth since President MACAPAGAL-ARROYO took office in 2001, reflecting the continued resilience of the service sector, and improved exports and agricultural output. Nonetheless, it will take a higher, sustained growth path to make appreciable progress in the alleviation of poverty given the Philippines' high annual population growth rate and unequal distribution of income. MACAPAGAL-ARROYO is also credited with improving the Philippines' fiscal balance by improving government tax collection efforts and tightening spending. Manila is now planning to step up a series of privatizations of large unprofitable public enterprises, especially in the energy sector, to further close the budget gap and raise capital to help finance new infrastructure projects. Credit rating agencies have at times expressed concern about the Philippines' ability to service its large private and public debt, though central bank reserves appear adequate and remittance inflows appear stable. Investors and credit rating institutions will continue to look for effective implementation of the new Value Added Tax (VAT) and continued improvement in the government's overall fiscal capacity.

GDP (purchasing power parity):
$298.9 billion (2007 est.)

GDP (official exchange rate):
$142.3 billion (2007 est.)

GDP - real growth rate:
6.3% (2007 est.)

GDP - per capita (PPP):
$3,300 (2007 est.)

GDP - composition by sector:
agriculture: 13.8%
industry: 31.7%
services: 54.5% (2007 est.)

Labor force:
36.31 million (2007 est.)

Labor force - by occupation:
agriculture: 36%
industry: 15%
services: 49% (2004 est.)

Unemployment rate:
7.9% (2007 est.)

Population below poverty line:
40% (2001 est.)

Household income or consumption by percentage share:
lowest 10%: 2.2%
highest 10%: 34.2% (2003)

Distribution of family income - Gini index:
44.5 (2003)

Inflation rate (consumer prices):
2.8% (2007 est.)

Investment (gross fixed):
14.4% of GDP (2007 est.)

Budget:
revenues: $23.96 billion
expenditures: $25.24 billion (2007 est.)

Public debt:
62.3% of GDP (2007 est.)

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:
7% (2007 est.)

Electricity - production:
53.67 billion kWh (2005)

Electricity - consumption:
46.86 billion kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
0 kWh (2005)

Oil - production:
24,310 bbl/day (2005 est.)

Oil - consumption:
340,000 bbl/day (2005 est.)

Oil - exports:
34,900 bbl/day (2004)

Oil - imports:
353,700 bbl/day (2004)

Oil - proved reserves:
152 million bbl (31 December 2006)

natural gas - production:
2.781 billion cu m (2005 est.)

natural gas - consumption:
2.781 billion cu m (2005 est.)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
0 cu m (2005)

natural gas - proved reserves:
107.5 billion cu m (1 January 2006 est.)

Current account balance:
$9.04 billion (2007 est.)

Exports:
$48.38 billion f.o.b. (2007 est.)

Exports - commodities:
semiconductors and electronic products, transport equipment, garments, copper products, petroleum products, coconut oil, fruits

Exports - partners:
US 18.3%, Japan 16.5%, Netherlands 10.1%, China 9.8%, Hong Kong 7.8%, Singapore 7.3%, Malaysia 5.6%, Taiwan 4.3% (2006)

Imports:
$53.96 billion f.o.b. (2007 est.)

Imports - partners:
US 16.3%, Japan 13.6%, Singapore 8.5%, Taiwan 8%, China 7.1%, South Korea 6.2%, Saudi Arabia 5.8%, Malaysia 4.1%, Thailand 4.1%, Hong Kong 4% (2006)

Economic aid - recipient:
ODA, $561.8 million in commitments (2005)

Reserves of foreign exchange and gold:
$33.31 billion (31 December 2007 est.)

Debt - external:
$62.84 billion (31 December 2007 est.)

Stock of direct foreign investment - at home:
$16.37 billion (2006 est.)

Stock of direct foreign investment - abroad:
$2.189 billion (2006 est.)

Market value of publicly traded shares:
$68.38 billion (2006)

Currency (code):
Philippine peso (PHP)

Exchange rates:
Philippine pesos per US dollar - 46.634 (2007), 51.246 (2006), 55.086 (2005), 56.04 (2004), 54.203 (2003)