The Philippines and the Economy
The Philippines: General Economy
and Export Industry
The Economy of the Philippines is the 40th largest in the world, according to 2012 International Monetary Fund statistics, and is also one of the emerging markets in the world. The Philippines is considered as a newly industrialized country, which has been transitioning from being one based on agriculture to one based more on services and manufacturing. According to the CIA Factbook, the estimated 2012 GDP (purchasing power parity) was $424.355 billion. Goldman Sachs estimates that by the year 2050, the Philippines will be the 14th largest economy in the world, Goldman Sachs also included the Philippines in its list of the Next Eleven economies. According to HSBC, the Philippine economy will become the 16th largest economy in the world, 5th largest economy in Asia and the largest economy in the Southeast Asian region by 2050.
Primary exports include semiconductors and electronic products, transport equipment, garments, copper products, petroleum products, coconut oil, and fruits. Major trading partners include the United States, Japan, China, Singapore, South Korea, the Netherlands, Hong Kong, Germany, Taiwan, and Thailand. The Philippines has been named as one of the Tiger Cub Economies together with Indonesia, Malaysia and Thailand. It is currently one of Asia's fastest growing economies. However, major problems remain, mainly having to do with alleviating the wide income and growth disparities between the country's different regions and socioeconomic classes, reducing corruption, and investing in the infrastructure necessary to ensure future growth.
The Philippine economy has been growing steadily over decades and the International Monetary Fund in 2011 reported it as the 45th largest economy in the world. However its growth has been behind that of many of its Asian neighbors, the so-called Asian Tigers, and it is not a part of the Group of 20 nations. Instead it is open grouped in a second tier of emerging markets or of newly industrialized countries. Depending upon the analyst, this second tier can go by the name the Next Eleven or the Tiger Cub Economies.
In the years 2012 and 2013, the Philippines posted high GDP growth rates, reaching 6.8% in 2012 and 7.7% in the first quarter and 7.5% in the second quarter of 2013, the highest GDP growth rates in Asia for the first two quarters of 2013, followed by China and Indonesia.
GDP growth at constant 1985 prices in Philippine pesos.
Export Performance and Prospects
The Philippines exports continue with its upward trend throughout 2010. While US and Japan have remained the country's two largest export markets, China and ASEAN countries have grown in importance. Other key markets include Hong Kong, Germany, Netherlands, South Korea, France and India.
Besides diversifying its markets and increasing its concentration on the the production of goods and services with clear competitive advantage, Philippines is looking to further value add growth sectors such as IT-BPO and penetrate high growth markets in Asia to achieve the projected growth for the next 2 years.
Upcoming EventsImport Documentation Seminar
A seminar on Import and Export Procedures on Customs Common Bonded Warehouse (CCBW).