Economy of the Philippines

Economy of the Philippines
Metro Manila, the economic center of the Philippines
CurrencyPhilippine peso (Filipino: piso; sign: ₱; code: PHP)
Calendar year
Trade organizations
ADB, AIIB, AFTA, APEC, ASEAN, EAS, G-24, RCEP, WTO and others
Country group
Statistics
Population
  • Neutral increase 109,035,343 (12th)
    (2020 census)[3][4]
  • Increase 114,163,719
    (2024 estimate)[5]
GDP
GDP rank
GDP growth
  • Increase 5.6% (2023)[1]
  • Increase 6.2% (2024f)[1]
  • Increase 6.2% (2025f)[1]
GDP per capita
  • Increase $4,130 (nominal; 2024 est.)[6]
  • Increase $12,191 (PPP; 2024 est.)[6]
GDP per capita rank
GDP by sector
GDP by component
  • Household consumption 73.1%
  • Government consumption 14.2%
  • Gross capital formation 23.1%
  • Exports of goods and services 27.4%
  • Less: Imports of goods and services 39.2%
  • Other source 10.6%
  • (2023)[7]
Positive decrease 1.9% (September 2024)[8]
Population below poverty line
  • Positive decrease 15.5% (2023)[9]
  • Steady 18.0% on less than $3.65/day (2021)[10]
Positive decrease 41.2 medium (2021)[11]
Increase 34 out of 100 points (2023, 115th rank)
Labor force
  • Increase 50.28 million
  • Increase 66.0% participation rate
  • (June 2024 est.)[13]
Labor force by occupation
Unemployment
  • Positive decrease 3.1%
  • Positive decrease 1.62 million unemployed
  • (June 2024 est.)[13]
Average gross salary
₱18,423 / US$338 monthly (2022)[14]
Gross savingsIncrease ₱6.60 trillion (2023)[15]
Main industries
External
Exports$115.26 billion (2022)[18][7][note 1]
Export goods
Main export partners
Imports$159.29 billion (2022)[18][7][note 1]
Import goods
Main import partners
FDI stock
  • Increase $118.985 billion (Inward, 2023)[21]
  • Increase $68.272 billion (Outward, 2023)[21]
  • Positive decrease -$11.20 billion
  • Positive decrease -2.6% of GDP (2023)[22][23]
  • Negative increase $125.394 billion
  • Negative increase 28.7% of GDP (2023p)[7]
Public finances
  • ₱14.616 trillion
  • ($263.03 billion)
  • Positive decrease 60.2% of GDP (2023)[7][24]
  • -₱1.512 trillion
  • (-$27.21 billion)
  • −6.2% of GDP (2023)[7]
Revenues
  • ₱3.824 trillion
  • ($68.81 billion)
  • 15.7% of GDP (2023)[7]
Expenses
  • ₱5.336 trillion
  • ($99.63 billion)
  • 22.0% of GDP (2023)[7]
Economic aidrecipient: $1.67 billion (2011)[25]
  • Fitch:[29]
  • BBB (Domestic/Foreign)
  • BBB+ (Country Ceiling)
  • Outlook: Stable
Increase $112.707 billion (September 2024)[22][30]
All values, unless otherwise stated, are in US dollars.

The economy of the Philippines is an emerging market, and considered as a newly industrialized country in the Asia-Pacific region.[31] In 2024, the Philippine economy is estimated to be at ₱26.55 trillion ($471.5 billion), making it the world's 32nd largest by nominal GDP and 13th largest in Asia according to the International Monetary Fund.

The Philippine economy is transitioning from one based on agriculture to one based more on services and manufacturing. It has experienced significant economic growth and transformation in recent years. With an average annual growth rate of around 6 percent since 2010, the country has emerged as one of the fastest-growing economies in the world.[32] The Philippines is a founding member of the United Nations, Association of Southeast Asian Nations, Asia-Pacific Economic Cooperation, East Asia Summit and the World Trade Organization.[33] The Asian Development Bank (ADB) is headquartered in the Ortigas Center located in the city of Mandaluyong, Metro Manila.

The country's primary exports include semiconductors and electronic products, transport equipment, garments, chemical products, copper, nickel, abaca, coconut oil, and fruits. Its major trading partners include Japan, China, the United States, Singapore, South Korea, the Netherlands, Hong Kong, Germany, Taiwan, and Thailand.

In 2017, the Philippine economy was projected to become the 9th largest in Asia and 19th largest in the world by 2050.[34] By 2035, the Filipino economy is predicted to be the 22nd largest in the world.[35]

The Philippines has been named as one of the Tiger Cub Economies, alongside Indonesia, Malaysia, Vietnam, and Thailand. However, major problems remain, mainly related to 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.

In 2024, the World Economic Forum chief Børge Brende said that “there is a real opportunity for this country to become a $2-trillion economy.”[36]

  1. ^ a b c d WORLD ECONOMIC OUTLOOK — Steady but Slow: Resilience amid Divergence. International Monetary Fund (Report). pp. 36, 142. Retrieved April 16, 2024.
  2. ^ "World Bank Country and Lending Groups". World Bank. Retrieved September 29, 2019.
  3. ^ Mapa, Claire Dennis S. (July 7, 2021). "2020 Census of Population and Housing (2020 CPH) Population Counts Declared Official by the President" (Press release). Philippine Statistics Authority. Archived from the original on July 7, 2021.
  4. ^ "PH 2021 population growth lowest in 7 decades". Philippine News Agency. Retrieved December 27, 2021.
  5. ^ "Population Projection Statistics". psa.gov.ph. March 28, 2021. Archived from the original on December 26, 2023. Retrieved November 15, 2023.
  6. ^ a b c d "World Economic Outlook Database, April 2024". International Monetary Fund. Retrieved April 16, 2024.
  7. ^ a b c d e f g h i "PHILIPPINES: SELECTED ECONOMIC AND FINANCIAL INDICATORS" (PDF). Bangko Sentral ng Pilipinas. Archived (PDF) from the original on March 28, 2024.
  8. ^ Mapa, Claire Dennis S. "Summary Inflation Report Consumer Price Index (2018=100): September 2024" (Press release). Philippine Statistics Authority. Retrieved October 4, 2024.
  9. ^ Mapa, Claire Dennis S. "Percentage of Filipino Families Classified as Poor Declined to 10.9 percent in 2023". Philippine Statistics Authority (Press release). Archived from the original on July 22, 2024.
  10. ^ "Poverty headcount ratio at $3.65 a day (2017 PPP) (% of population)". World Bank. Retrieved November 3, 2019.
  11. ^ Mapa, Claire Dennis S. "Highlights of the Preliminary Results of the 2021 Annual Family Income and Expenditure Survey" (Press release). Philippine Statistics Authority. Archived from the original on August 3, 2023. Retrieved August 15, 2022.
  12. ^ a b Human Development Index (HDI). Human Development Reports (Report). United Nations Development Programme. Retrieved October 10, 2022.
  13. ^ a b c Mapa, Claire Dennis S. "Employment Rate in June 2024 was Estimated at 96.9 Percent" (Press release). Philippine Statistics Authority. Retrieved August 7, 2024.
  14. ^ Mapa, Claire Dennis S. "Highlights of the 2022 Occupational Wages Survey (OWS)" (Press release). Philippine Statistics Authority. Archived from the original on September 25, 2023. Retrieved September 22, 2023.
  15. ^ Mapa, Claire Dennis S. "The country's total gross saving in 2023 expands to PhP 6.60 trillion". Philippine Statistics Authority (Press release). Archived from the original on June 27, 2024.
  16. ^ "Manufacturing". Industry.gov.ph. Department of Trade and Industry. Archived from the original on February 25, 2023. Retrieved February 25, 2023.
  17. ^ "Census of Philippine Business and Industry (CPBI)". Philippine Statistics Authority.
  18. ^ a b "Philippines (PHL) Exports, Imports, and Trade Partners". The Observatory of Economic Complexity.
  19. ^ a b Del Prado, Divina Gracia. "Highlights of the 2023 Foreign Trade Statistics for Agricultural Commodities in the Philippines: Final Results". Philippine Statistics Authority (Press release). Archived from the original on April 12, 2024.
  20. ^ a b c d Del Prado, Divina Gracia. "Highlights of the 2023 Annual International Merchandise Trade Statistics of the Philippines". Philippine Statistics Authority (Press release). Archived from the original on April 12, 2024.
  21. ^ a b World Investment Report 2024: Philippines (PDF). United Nations Conference on Trade and Development (Report). Archived (PDF) from the original on June 22, 2024.
  22. ^ a b "Special Data Dissemination Standards, Economic and Financial Data for the Philippines". Bangko Sentral ng Pilipinas. Retrieved July 23, 2022.
  23. ^ "PHILIPPINES: BALANCE OF PAYMENT". Bangko Sentral ng Pilipinas. Retrieved March 28, 2024.
  24. ^ Gonzalez, Anna Leah. "PH debt-to-GDP improves in 2023". Philippine News Agency. Archived from the original on January 31, 2024.
  25. ^ "NEDA: Foreign aid releases slightly increased in 2011 | Inquirer Business". Philippine Daily Inquirer. March 5, 2012. Retrieved October 12, 2012.
  26. ^ "Philippines: Japan Credit Rating Agency, Ltd" (PDF). JCR. Retrieved March 10, 2023.
  27. ^ S&P Global reaffirms PH rating at BBB+. Department of Finance (Report). Archived from the original on December 9, 2022. Retrieved November 17, 2022.
  28. ^ Moaje, Marita. "Moody's affirms PH's 'BAA2' investment-grade credit rating". Philippine News Agency. Retrieved August 23, 2024.
  29. ^ "Philippines". Fitch Ratings. Retrieved May 22, 2023.
  30. ^ "Gross International Reserves". Bangko Sentral ng Pilipinas. Retrieved January 1, 2023.
  31. ^ "The World Bank in the Philippines". World Bank. Retrieved March 21, 2022.
  32. ^ "High Growth Potential for U.S. Agricultural Exports to the Philippines". USDA Foreign Agricultural Service. June 8, 2022. Macroeconomic Perspective. Archived from the original on June 13, 2022. Retrieved August 9, 2023.
  33. ^ "The Philippines: September 1999". World Trade Organization. September 20, 1999.
  34. ^ ""The World in 2050."". PwC. Retrieved February 1, 2017.
  35. ^ "Philippines poised to be 22nd biggest economy in the world by 2035 — CEBR". BusinessWorld. December 28, 2020. Archived from the original on May 20, 2022. Retrieved December 29, 2020.
  36. ^ Cordero, Ted (March 19, 2024). "Philippines could be a $2-trillion economy in next decade —World Economic Forum". GMA Integrated News. Retrieved March 20, 2024.


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