From WEF “Global Competitiveness report 2012-13”, key performance indices of Philippines in a global scale is analyzed below:
0.5% of world-wide GDP share implies Philippines is really an insignificant player in world economy in terms of economic output, and 95 millions population, about 1.5% of ~7 billion world population, means current productivity level is only one third of world average. This is a typical characteristic of developing Asian countries, i.e., high population but low economic production output. However, even if only comparing with average of developing Asian countries, including China, India, Indonesia, Malaysia, Pakistan, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, Vietnam, the growth of Philippines’ GDP per capita is still significantly lagging behind in the past 20 years, and the gap is continuously widen since 2006. [pic]
Philippines is at the stage of transitioning from factor driven economy to efficiency driven economy. What is promising for Philippines is that the global ranking of competitiveness among 144 countries is improving for the last three year, 85 – 75 – 65, and indices “Macroeconomic environment”, “Market size” are even among the top 40. The indices show “Labor market efficiency”, “Infrastructure”, “Health and primary education”, “Institution” and “Innovation” are area lagging behind. [pic]
From the survey data of “The most problematic factors for doing business” in Philippines show government corruption, bureaucracy and policy instability are the most problematic issues businessmen are facing, other than inadequate infrastructure such as road, stable supply of electricity etc.
I. Trade and Foreign Direct Investment in the Philippines Historically, the Philippines have been an important centre for commerce for centuries for its important location in south east Asia. Since 1980s, the Philippines have opened their economy to foreign markets, and established a network of free trade agreements with several countries. Some Philippines' Import and Export Indicators and Statistics are list below: - Total value of exports: US$50.72 billion
- Primary exports - commodities: semiconductors and electronic products, transport equipment, garments, copper products, petroleum products, coconut oil, fruits - Primary exports partners: US (17.6 percent of total exports), Japan (16.2 percent), Netherlands (9.8 percent), Hong Kong (8.6 percent), China (7.7 percent), Germany (6.5 percent), Singapore (6.2 percent), South Korea (4.8 percent) - Total value of imports: US$59.9 billion
- Primary imports - commodities: electronic products, mineral fuels, machinery and transport equipment, iron and steel, textile fabrics, grains, chemicals, plastic - Primary imports partners: Japan (12.5 percent of total imports), US (12 percent), China (8.8 percent), Singapore (8.7 percent), South Korea (7.9 percent), Taiwan (7.1 percent), Thailand (5.7 percent)
The United States is one of the Philippines top trading partners. In 2010, according to US Department of Commerce data, trade between the Philippines and US amounts to US$15.4 billion. US is also the Philippines largest foreign investor, with foreign direct investment close to US$6 billion at the end of 2009.
As of 21st century, the country is member in several international trade organizations including the APEC, ASEAN and WTO, under the new Aquino administration, the government plans to open up the country to more foreign investment in industries such as business processing operations, mining and tourism. However, this move may be hindered by restrictions such a prohibition of foreign ownership of land and public utilities. Also foreign investment was also impact by the financial crisis in 2008-2009 period, historical foreign investment data, breakdown by industry and country are listed below: [pic]
Net inflows of foreign direct investments (FDI) to the Philippines for the...