Topics: Macroeconomics, Tax, Inflation Pages: 5 (918 words) Published: January 2, 2013
Economy - overviewzz
Philippine GDP grew 7.6% in 2010, spurred by consumer demand, a rebound in exports and investments, and election-related spending, before cooling to 3.7% in 2011. The economy weathered the 2008-09 global recession better than its regional peers due to minimal exposure to troubled international securities, lower dependence on exports, relatively resilient domestic consumption, large remittances from four- to five-million overseas Filipino workers, and a growing business process outsourcing industry. Economic growth in the Philippines averaged 4.5% during the MACAPAGAL-ARROYO administration (January 2001 - June 2010). Despite this growth, however, poverty worsened during her presidency. The AQUINO administration is working to reduce the government deficit from 3.9% of GDP, when it took office, to 2% of GDP by 2013. The government has had little difficulty issuing debt, both locally and internationally, to finance the deficits. The AQUINO Administration reduced public debt to below 50% of GDP and obtained several ratings upgrades on sovereign debt so that the Philippines is now close to investment grade. However, the lack of government spending, especially on infrastructure, was one of several factors which slowed GDP growth in the second half of 2011, leading the government to announce a stimulus effort and increased public spending on infrastructure in 2012. AQUINO's first budget emphasized education, health, conditional cash transfers for the poor, and other social spending programs, relying mostly on the private sector to finance important infrastructure projects. Weak tax collection, exacerbated by new tax breaks and incentives, has limited the government's ability to address major challenges. The AQUINO administration has vowed to focus on improving tax collection efficiency, rather than imposing new taxes, as a part of its good governance platform. The economy still faces several long-term challenges, including reliance on energy imports and foreign demand for overseas Filipino workers.

GDP (purchasing power parity)
$389.8 billion (2011 est.) 
$375.9 billion (2010 est.) 
$349.2 billion (2009 est.) 
note: data are in 2011 US dollars
GDP (official exchange rate)
$216.1 billion (2011 est.)
GDP - real growth rate
3.7% (2011 est.) 
7.6% (2010 est.) 
1.1% (2009 est.)
GDP - per capita (PPP)
$4,100 (2011 est.) 
$4,000 (2010 est.) 
$3,800 (2009 est.) 
note: data are in 2011 US dollars
GDP - composition by sector
agriculture: 12.8% 
industry: 31.5% 
services: 55.7% (2011 est.)
Population below poverty line
32.9% (2006 est.)
Labor force
40 million (2011 est.)
Labor force - by occupation
agriculture: 33% 
industry: 15% 
services: 52% (2010 est.)
Unemployment rate
7% (2011 est.) 
7.3% (2010 est.)
Unemployment, youth ages 15-24
total: 17.4% 
male: 16.2% 
female: 19.3% (2009)
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)
19.3% of GDP (2011 est.)
revenues: $31.4 billion 
expenditures: $35.96 billion (2011 est.)
Taxes and other revenues
14.8% of GDP (2011 est.)
Budget surplus (+) or deficit (-)
-2.2% of GDP (2011 est.)
Public debt
49.4% of GDP (2011 est.) 
52.4% of GDP (2010 est.) 

Inflation rate (consumer prices)
5.3% (2011 est.) 
3.8% (2010 est.)
Central bank discount rate
3.8% (31 December 2010 est.) 
3.5% (31 December 2009 est.)
Commercial bank prime lending rate
7.3% (31 December 2011 est.) 
7.673% (31 December 2010 est.)
Market value of publicly traded shares
$202.3 billion (31 December 2010) 
$130.5 billion (31 December 2009) 
$85.63 billion (31 December 2008)
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,...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Rates of Reaction Essay
  • Essay about Rates of Reaction
  • Chemical Reaction Research Paper
  • Essay about Coupled Reactions
  • Essay on Chemical Reactions
  • Essay about Grignard Reaction
  • Runaway Reactions Essay
  • Chemical Reactions Essay

Become a StudyMode Member

Sign Up - It's Free