Philippines

Philippines location

Philippine

Philippine general information

Type of State: Republic, based on a presidential
government
Type of Economy: Country with intermediate income
(lower section), emerging financial market.
Economy which primarily depends on agriculture;
world's largest producer of coconut products. The
highest birth rate in Asia.
HDI*: 0.660/1
HDI (World Rank): 117/187

Philippine
Internet Suffix: .ph
Computers: 4.5 per 100 Inhabitants
Telephone Lines: 4.1 per 100 Inhabitants
Internet Users: 36.2 per 100 Inhabitants
Access to Electricity: 89.7% of the Population

Phlippines
Consist in 7000 islands
Twelve most populated country in he world
Former colony of spain
Under the control of USA in 1901- 1935 and then again after
WWII (totally around 50 year)
In that time political organizations here developed
Bicameral legislature follow the system of US
Political parties formed
English become main language
Japan invasion 1942 to 1945

Philippines
Independence 1946 July
Politically instable
Communist movements
Role of army
Muslims and Christians conflicts
Era of Marcos the system a economics decline and
create instability
It include all power for president

Legal system
Base in Spanish and Anglo American code and law
Consist five stages of courts from supreme court to
municipal court
There is separated business law, The Philippine Code of
Commerce, similar than Spain
The foreign Investment act 1991

Political system
Representative government
President is head of the state
24 member senate 250 members for house of representatives

(3 year)
Multi party system
Despite democratic development there is two major conflicts
between government and Communist and Abu sayyaf group
Founding member of ASEAN and no problem other ASEAN
countries
Active in United States operations

Economic system
After WWII, Philippine was most strongest economy in
Asia
Shortly after that declined and become one of the
poorest country in Asia. (Era of Marcos), miss
management, underperformance, oligopolies
Creat high level of corruption and decline of
government institutions
Underinvestment in infrastructure uneven economic
development and distribution of income
Lead political instability and volatile

Philippine
In the mid of 1980 end of Marcos era
Aquino era 1986 1992 lead long term economic growth
Investment in infrastructure
Liberalized in investment and trade
More open economy
Continue in age of Ramos
End of 1990, the macro economy stability has reached but hampered
still in relative low infrastructure and education
Despite high economic growth there is budget deficit every year since
1988
The Philippines ranks fairly low on the world ranking to do business.

Economy
The Philippines' economy, which has strengthened in
recent years, remains very dynamic despite occasional
shocks. After reaching 7.2% in 2013 thanks to domestic
consumption, employment and vigorous FDI flows, it
slowed down in 2014 (6.2%) due to a drop in public
spending.
It was supported by a record level of remittances,
which fuelled domestic consumption. The economy is
expected to rebound in 2015 with the recovery of public
spending linked to the reconstruction and public-private
partnerships (PPP) in the infrastructure sector.

Economy
In late 2013, the country was hit by the typhoon Haiyan, one of
the most powerful since records began, and in the following
year suffered the effects of typhoon Yolanda; in spite of this, the
economy has remained resilient and, in late 2014, the rating
agency Moody's raised the country's credit rating.
Remittances increased by 8% in 2014, which encouraged
domestic consumption, and a priority investment plan to
increase business competitiveness boosted exports. Inflation
slowed down, and the performance of the financial system was
solid. In line with the previous year, the 2015 budget focuses on
the fight against poverty: 36.6% of the budget has been
allocated to social services.

Eonomy
The Government's objective is to reduce the incidence of poverty to 16%
by 2016 and ensure equal opportunities for all. A significant part of the
budget has been reserved for basic education. The 2015 budget is 15%
higher than the previous one and also focuses on tax reforms,
development and governance, as well as responding to the challenges
posed by climate change and post-disaster rehabilitation. The challenges
facing the Government include an increase in social spending, which in the
medium term will require an increase in tax revenue, improving
infrastructure and creating employment.
On a social level, the country faces several challenges: the population
living below the poverty line has increased in recent years (33% of the
population); the unemployment rate (6.7% of the active population),
aggravated by the 2009 crisis, although it is now decreasing; a significant
demographic growth and persistent inequality in wealth distribution.

Main Sectors of Industry

The agricultural sector employs about 32% of the
labour force, but contributes to less than 11% of the
GDP. The Philippines is one of the world's main
producers of rice and coconut. However, the agricultural
sector suffers from low productivity, weak economies of
scale and inadequate infrastructure. Fishing contributes
to 3% of the GDP. The Philippines is one of the richest
countries of the world in terms of minerals with an
unexploited mineral wealth estimated at more than USD
840 billion. The Philippines reserves of copper, gold and
zinc are among the largest in the world.

Main Sectors of Industry continue

The manufacturing sector contributes to around 30% of
the GDP and employs 15% of the population. Industrial
food processing is one of the Philippines' main
manufacturing activities. The big industries are
dominated by the production of cement, glass,
chemicals products and fertilisers, iron, steel and
refined oil products.
The tertiary sector, which represents more than 57% of
the GDP, has developed substantially especially in the
fields of telecommunications, call centres and finance.

Economy in shortly
Main
Indicators

2011

2012

2013

2014

2015 (e)

GDP (billions
USD)

224.14

250.24

272.07

289.69e

330.26

GDP (Constant
Prices, Annual 3.7
% Change)

6.8

7.2

6.2e

6.3

GDP per
Capita (USD)

2,379

2,612

2,913e

3,256

General
Government
Balance (in %
of GDP)

-0.2

-0.7

-0.3

-0.7e

-1.5

General
Government
Gross Debt (in
% of GDP)

41.4

40.6

39.1

36.3e

33.9

Inflation Rate
(%)

4.7

3.2

2.9

4.5e

3.9

Unemploymen
t Rate (% of
7.0
the Labor
Force)

7.0

7.1

6.9

6.8

Current
Account
(billions USD)

5.65

6.95

9.42

9.18e

8.55

Current
Account (in %
of GDP)

2.5

2.8

3.5

3.2e

2.6

Foreign Trade in Figures

Foreign Trade
2009
Indicators

2010

2011

2012

2013

Imports of
Goods
(million USD)

45,878

58,468

63,693

65,350

64,980

Exports of
Goods
(million USD)

38,436

51,496

48,305

51,995

53,977

Imports of
Services
(million USD)

8,477

11,129

12,066

14,093

15,752

Exports of
Services
(million USD)

10,248

14,095

17,711

18,478

22,279

FDI in figures
Foreign direct investment (FDI) has been rising steadily in recent years.
Between January and November 2014, FDI flows reached USD 5.7 billion,
which represents a more than 60% increase compared to 2013. Considering
the comparative advantages of the Philippines, such as an English speaking
and well-skilled workforce, a strong cultural proximity to the United States
and a geographical location in a dynamic area, the FDI flows remain
relatively weak.
This can be partially explained by the fact that the country is evolving into a
service society with a low capital strength, which means a need of minimal
equipment.
In addition, the government favours subcontracting agreements between
foreign companies and local enterprises rather than FDI in the strict sense
of the term. Lastly, corruption, instability, inadequate infrastructures and
not enough juridical security discourages investment.

FDI in figures
Foreign Direct
Investment

2012

2013

2014

FDI Inward Flow

(million USD)

2,033

3,737

6,201

FDI Stock (million

USD)

36,459

47,276

57,093

Number of
Greenfield
Investments***

96

129

158

FDI Inwards (in % of

GFCF****)

4.1

6.7

10.5

FDI Stock (in % of

GDP)

14.6

17.4

20.0

FDI
Main Invested Sectors

2013, in %

Manufacturing sector

28.3

Administration, support activities

6.3

Electricity, water, gas

27.2

Transport and storage

20.2

Hotels, catering

9.3

Administration, support activities

9.0

Why You Should Choose to Invest in the Philippines

Strong Points:
- A skilled English-speaking workforce;
- A large domestic market;
- Its membership to ASEAN;
- A favorable investment policy;
- A very advanced legal system;
- A strategic location at the Asian gateway; and
- Considerable natural wealth.
Weak Points:
The country's weak points lie in its political instability, the bad quality of its
infrastructures, judicial precariousness and lack of transparency.