The Philippines economy is the world’s 47th largest economy. The Philippine peso is the country’s unit of currency. The Philippines has undergone a transformation from being an agriculture based country to that of a newly industrialized country.

A newly industrialized country, the Philippine economy has been transitioning from one based on agriculture to one based more on services and manufacturing. Of the country’s total labor force of around 38.1 million, the agricultural sector employs close to 32% but contributes to only about 13.8% of GDP.

The industrial sector employs around 13.7% of the workforce and accounts for 30% of GDP. Meanwhile the 46.5% of workers involved in the services sector are responsible for 56.2% of GDP.

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Major Facts:

Export goods include: semiconductors and electronic products, transport equipment, garments, copper products, petroleum products, coconut oil, fruits and estimated about $37.2 billion.

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Main export partners: US 17.6%, Japan 16.2%, Netherlands 9.8%, Hong Kong 8.6%, China 7.7%, Germany 6.5%, Singapore 6.2%, South Korea 4.8%.
Import goods include: electronic products, mineral fuels, machinery and transport equipment, iron and steel, textile fabrics, grains, chemicals, plastic and estimated about $45.8 billion.

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Main import partners: Japan 12.5%, US 12%, China 8.8%, Singapore 8.7%, South Korea 7.9%, Taiwan 7.1%, Thailand 5.7%.

Industry: textiles and garments, pharmaceuticals, chemicals, wood products, food processing, electronics and semiconductor assembly, petroleum refining, fishing, business process outsourcing services.

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Annual GDP growth rate: 4.6%.

GDP per capita: $3,300.

Natural resources: Copper, nickel, iron, cobalt, silver, gold.

Agriculture: Products: rice, coconut products, sugar, corn, pork, bananas, pineapple products, aquaculture, mangoes, eggs.

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Since the end of World War II, the Philippine economy has been on an unfortunate trajectory, going from one of the richest countries in to one of the poorest. Growth immediately after the war was rapid, but slowed over time.

Years of economic mismanagement and political volatility during the Marcos regime contributed to economic stagnation and resulted in macroeconomic instability. A severe recession from 1984 through 1985 saw the economy shrink by more than 10%, and perceptions of political instability during the Aquino administration further dampened economic activity.

Important sectors of the Philippine economy include agriculture and industry, particularly food processing, textiles and garments, and electronics and automobile parts. Most industries are concentrated in the urban areas around metropolitan Manila. Mining also has great potential in the Philippines, which possesses significant reserves of chromite, nickel, and copper. Significant natural-gas finds off the islands of Palawan have added to the country’s substantial geothermal, hydro, and coal energy reserves.