Economy Philippines
Economy - overview:
The Philippines was less severely affected by the Asian financial
crisis of 1998 than its neighbors, aided in part by annual
remittances of $7-8 billion from overseas workers and no sustained
runup in asset prices or foreign borrowing prior to the crisis. From
a 0.6% decline in 1998, GDP expanded by 2.4% in 1999, and 4.4% in
2000, but slowed to 3.2% in 2001 in the context of a global economic
slowdown, an export slump, and political and security concerns. GDP
growth accelerated to 4.3% in 2002, 4.7% in 2003, and about 6% in
2004, 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
poverty alleviation given the Philippines' high annual population
growth rate and unequal distribution of income. The Philippines also
faces higher oil prices, higher interest rates on its dollar
borrowings, and higher inflation. Fiscal constraints limit Manila's
ability to finance infrastructure and social spending. The
Philippines' consistently large budget deficit has produced a high
debt level and has forced Manila to spend a large portion of the
national government budget on debt service. Large, unprofitable
public enterprises, especially in the energy sector, contribute to
the government's debt because of slow progress on privatization.
Credit rating agencies are increasingly concerned about the
Philippines' ability to sustain the debt; legislative progress on
new revenue measures will weigh heavily on credit rating decisions.
GDP (purchasing power parity):
$430.6 billion (2004 est.)
GDP - real growth rate:
5.9% (2004 est.)
GDP - per capita:
purchasing power parity - $5,000 (2004 est.)
GDP - composition by sector: agriculture: 14.8% industry: 31.9% services: 53.2% (2004 est.)
Labor force:
35.86 million (2004 est.)
Labor force - by occupation:
agriculture 36%, industry 16%, services 48% (2004 est.)
Unemployment rate:
11.7% (2004 est.)
Population below poverty line:
40% (2001 est.)