- Industrialized country
- Philpine econmy before covid
- Impact on the Philippines GDP
- The economic outlook for the Philippines
The Philippines is one of the world’s largest archipelago nations. It is situated in Southeast Asia in the Western Pacific Ocean. Its islands are classified into three main geographical areas – Luzon, Visayas, and Mindanao.
It is a developing country with a high infant mortality rate, limited access to health care, and a low GDP per capita.
Aside from the warmth and hospitality that greets foreigners at every turn, the Philippines possesses the following advantages: quality manpower and resources; a strategic business location; a liberalized and business-friendly economy; a steadily developing infrastructure for global growth; a hospitable lifestyleEconomy of the Philippines
|Main industries||Electronics assembly, aerospace, business process outsourcing, food manufacturing, shipbuilding, chemicals, textiles, garments, metals, petroleum refining, fishing, steel, rice|
|Ease-of-doing-business rank||95th (easy, 2020)|
|Exports||$86.6 billion (2022)|
The Philippines has a booming economy, with enormous potential for further growth. … It is considered a “newly industrialized” country – one whose economy is transitioning from being based on agriculture to relying more on services and manufacturing.
The Philippines is primarily an agricultural country with a large portion of Filipinos living in rural areas and supporting themselves through agricultural activities.
Amidst rising global uncertainty and inflationary pressures, the Philippine economy is poised to remain strong and is projected to grow at 6.5 percent in 2018, 6.7 percent in 2019, and 6.6 percent in 2020.
Philpine econmy before covid:
Once colloquially known as the “Sick Man of Asia,” the Philippines’ economy enjoyed a period of resurgence from 2010 to 2016, thanks to the efforts of former president Benigno Aquino. Aquino set out to create a system that prioritised sustainable growth over quick wins. He pursued graft and tax evaders and increased transparency and accountability.
The Philippines received its first investment trade ratings; Fitch Ratings was the first, followed by Moody’s Investors Service and S&P Global in 2013. As the Philippines rose to prominence among emerging-market darlings, foreign direct investment poured into the country.
The impact of COVID-19 on the Philippines economy
In January 2020, the country’s first COVID-19 case was recorded, and by March, the country had been placed under a strict community quarantine, restricting mobility and commercial activity. While these actions delayed the spread of COVID-19, they had serious negative consequences for family incomes, jobs, education, food security, and businesses.
Impact on the Philippines GDP
The pandemic caused the Philippines’ economy to decline to its lowest level since World War II, with GDP decreasing by 9.5% in 2020. It’s the worst drop since records began in 1947, and it’s also the first time the economy has shrunk since 1998, when it contracted by 0.5%. When the tightest lockdown was implemented in the second quarter of 2020, GDP fell as low as -16.9%.
The economic outlook for the Philippines
The Philippines may face a longer road to recovery than its neighbours. It has imposed harsher and longer-lasting movement restrictions, as well as more conservative fiscal stimulus, causing economic scarring that will make it more difficult for the economy to recover.
More companies have reopened since the community quarantine was lifted (63% in November, compared with 45% in July), but only a tiny percentage are operating at full capacity (9%). While some company owners shuttered their doors to comply with government regulations (9%), others (21%) chose to do so despite the lessened community quarantines. Approximately 7% of businesses have permanently closed
The major industries of the Philippines include manufacturing and agribusiness. Within manufacturing, mining and mineral processing, pharmaceuticals, shipbuilding, electronics, and semiconductors are the focus areas. The Philippines is one of the most attractive pharmaceutical markets in the Asia-Pacific region.