The Economy of the Philippines is the 40 largest in the world, according to 2012 International [26] Monetary Fund statistics

and it is also one of the emerging markets in the world. The Philippines is considered as a newly industrialized country, it has been transitioning from one based on agriculture to one based more on services and manufacturing. According to the CIA Factbook, the estimated 2012 GDP [6] (purchasing power parity) was 424.355 billion. Goldman Sachs estimates that by the year 2050, the th Philippines will be the 14 largest economy in the world, Goldman Sachs also included the Philippines in its list of the Next Eleven economies. According to HSBC, the Philippine economy will become the 16th largest economy in the world, 5th largest economy in Asia and the largest economy in the Southeast [27] Asian region by 2050. Primary exports include semiconductors and electronic products, transport equipment, garments, copper products, petroleum products, coconut oil, and fruits. Major trading partners include the United States, Japan, China, Singapore, South Korea, the Netherlands, Hong Kong,Germany, Taiwan, and Thailand. The Philippines has been named as one of the Tiger Cub Economies together with Indonesia, Malaysia and Thailand.

th

Macroeconomic trends
The Philippine economy has been growing steadily over decades and the International Monetary Fund in 2011 reported it as the 45th largest economy in the world. However its growth has been behind that of many of its Asian neighbors, the so-called Asian Tigers, nor is it a part of the Group of 20 nations. Instead it is often grouped in a second tier of emerging markets or of newly industrialized countries. Depending upon the analyst, this second tier can go by the name the Next Eleven or the Tiger Cub Economies. In the year 2012 and 2013, the Philippines had posted high GDP growth rates such as 6.8% in 2012 and [3][28] 7.8% in the first quarter of 2013, making it the highest GDP growth rate in Asia for the first quarter of [29] 2013, followed by China and Indonesia. A chart of selected statistics showing trends in the gross domestic product of the Philippines using data [30][31] taken from the International Monetary Fund.

Composition by sector[edit]
As a newly industrialized country, the Philippines is still an economy with a large agricultural sector; [citation needed] however, services have come to dominate the economy. Much of the industrial sector is based on processing and assembly operations in the manufacturing of electronics and other high-tech components, usually from foreign multinational corporations. Filipinos who go aboard to work -known as Overseas Filipino Workers or OFWsare a significant contributor to the economy but are not reflected in the below sectoral discussion of the domestic economy. OFW remittances is also credited for the Philippines' recent economic growth resulting to investment status upgrades from credit ratings agencies such as the Fitch Groupand Standard & [34] Poor's.

Agriculture[edit]
The agriculture sector makes up 12% of the GDP and employs 33% of the workforce. The type of activity ranges from small subsistence farming and fishing to large commercial ventures with significant export focus, such as major multinational corporations like Dole Food Company and Del Monte Foods. The Philippines is the world's largest producer of coconuts producing 19,500,000 tons in 2009. Coconut [35] production in the Philippines is generally concentrated in medium-sized farms. By 1995, the production of coconut in the Philippines had experienced a 6.5% annual growth and later surpassed Indonesia in [36] total output in the world. The Philippines is also the world's largest producer of pineapples, producing [37] 2,198 thousand metric tons in 2009. Rice production in the Philippines is important to the food supply in the country and economy. The country is the 8th largest rice producer in the world, accounting for 2.8% of [38] [39] global rice production. However, the country is also the world's largest rice importer in 2010. Rice is the most important food crop, a staple food in most of the country. It is produced extensively in Luzon, the Western Visayas, Southern Mindanao, and Central Mindanao. The Philippines is also one of the largest producer of sugar in the world according to Food and Agriculture [40] Organization of the United Nations Statistics Division. At least 17 provinces located in 8 regions of the country have grown sugarcane crops, of which Negros island accounts for half of the countrys total production. As of Crop Year 2012-2013, 29 mills are operational divided as follows: 6 mills in Luzon, 13 [41] mills in Negros, 4 mills in Panay, 3 mills in Eastern Visayas and 3 mills in Mindanao. A range from 360,000 to 390,000 hectares are devoted to sugarcane production. The largest sugarcane areas are found in Negros which accounts for 51% of sugarcane areas planted. This is followed by Mindanao which [42] accounts for 20%; Luzon, 17%; Panay islands, 7% and Eastern Visayas, 4%.

Shipbuilding and repair[edit]

The Philippines is a major player in the global shipbuilding industry with shipyards [43][44] in Subic, Cebu, General Santos City and Batangas. It became the fourth largest shipbuilding nation [45][46] in 2010. Subic-made cargo vessels are now exported to countries where shipping operators are based. South Korea's Hanjin started production in Subic in 2007 of the 20 ships ordered by German and [47] Greek shipping operators. The countrys shipyards are now building ships like bulk carriers, container [48] ships and big passenger ferries. General Santos' shipyard is mainly for ship repair and maintenance. Being surrounded by waters, the country has abundant natural deep-sea ports ideal for development as production, construction and repair sites. On top of the current operating shipyards, two additional shipyards in Misamis Oriental and Cagayan province are being expanded to support future locators. It has a vast manpower pool of 60,000 certified welders that comprise the bulk of workers in shipbuilding. In the ship repair sector, the Navotas complex in Metro Manila is expected to accommodate 96 vessels [49] for repair.

Automotive[edit]
The ABS used in Mercedes-Benz, BMW, and Volvo cars are made in the [50] [51] Philippines. Ford, Toyota, Mitsubishi, Nissan and Honda are the most [citation needed] prominent automakers manufacturing cars in the country. Kia and Suzuki produce small cars in the country. Isuzu also produces SUVs in the country. Honda and Suzuki produce motorcycles in the country. A 2003 Canadian market research report predicted that further investments in this sector were [52] expected to grow in the following years. Toyota sells the most vehicles in the country. By 2011, China's

Chery Automobile company is going to build their assembly plant in Laguna, that will serve and export [53] cars to other countries in the region if monthly sales would reach 1,000 units. Automotive sales in the Philippines moved up from 165,056 units in 2011 to over 180,000 in 2012. Japans automotive manufacturing giant Mitsubishi Motors has announced that it will be expanding its operations in the [54] Philippines.

Aerospace[edit]
Aerospace products in the Philippines are mainly for the export market and include manufacturing parts for aircraft built by both Boeing and Airbus. Moog is the biggest aerospace manufacturer with base in Baguio in the Cordillera region. The company produces aircraft actuators in their manufacturing facility. In 2011, the total export output of aerospace products in the Philippines reached US $3 billion.
[55]

Electronics[edit]
A Texas Instruments plant in Baguio has been operating for 20 years and is the largest producer of DSP [56] chips in the world. Texas Instruments' Baguio plant produces all the chips used inNokia cell [57] phones and 80% of chips used in Ericsson cell phones in the world. Until 2005, Toshiba laptops were produced in Santa Rosa, Laguna. Presently the Philippine plant's focus is in the production of hard disk drives. Printer manufacturer Lexmark has a factory in Mactan in the Cebu region.

Mining and extraction[edit]

Geothermal power station in Negros Oriental.

The country is rich with mineral and geothermal energy resources. In 2003, it produced 1931 MW of electricity from geothermal sources (27% of total electricity production), second only to the United [58] States, and a recent discovery of natural gas reserves in the Malampaya oil fields off the island ofPalawan is already being used to generate electricity in three gas-powered plants. Philippine gold, nickel, copper and chromite deposits are among the largest in the world. Other important minerals include silver, coal, gypsum, and sulphur. Significant deposits of clay, limestone, marble, silica, and phosphate exist. About 60% of total mining production are accounted for by non-metallic minerals, which contributed substantially to the industry's steady output growth between 1993 and 1998, with the value of production [citation needed] growing 58%. In 1999, however, mineral production declined 16% to $793 million. Mineral exports have generally slowed since 1996. Led by copper cathodes, Philippine mineral exports amounted to $650 million in 2000, barely up from 1999 levels. Low metal prices, high production costs, lack of investment in infrastructure, and a challenge to the new mining law have contributed to the mining [citation needed] industry's overall decline. The industry rebounded starting in late 2004 when the Supreme Court upheld the constitutionality of an [citation needed] important law permitting foreign ownership of Philippines mining companies. However, the DENR has yet to approve the revised Department Administrative Order (DAO) that will provide the Implementing Rules and Regulations of the Financial and Technical Assistance Agreement (FTAA), the [citation needed] specific part of the 1994 Mining Act that allows 100% foreign ownership of Philippines mines.

Offshoring and outsourcing[edit]

A business process outsourcing office inBacolod

Main articles: Business process outsourcing in the Philippines and Call center industry in the Philippines According to an IBM Global Location Trends Annual Report, as of December 2010 the Philippines has [59][60] surpassed India as the world leader in business process outsourcing. The majority of the top [citation needed] ten BPO firms of the United States operate in the Philippines. Total jobs in the industry grew to 100,000 and total revenues were placed at $960 million for 2005. In 2012, BPO sector employment ballooned to over 700,000 people and is contributing to a growing middle class. BPO facilities are located mainly in Metro Manila and Cebu City although other regional areas such asBaguio, Bacolod, Cagayan de Oro, Clark Freeport Zone, Dagupan, Davao City, Legazpi, Dumaguete, Lipa, Iloilo City, and CamSur are now being promoted and developed for BPO operations. Call centers began in the Philippines as plain providers of email response and managing services and is now a major source of employment. Call center services include customer relations, ranging from travel services, technical support, education, customer care, financial services, online business to customer support, and online business to business support. Business process outsourcing (BPO) is regarded as one of the fastest growing industries in the world. The Philippines is also considered as location of choice due to its less expensive operational and labor costs and high proficiency in spoken English and highly educated labor pool. In 2011, the business process outsourcing industry in the Philippines generated 700 [61] [62] thousand jobs and some US$11 billion in revenue, 24 percent higher than 2010. By 2016, the industry is projected to reach US$27.4 billion in revenue with employment generation to almost double at [63] 1.3 million workers. BPOs and the call center industry in general is also credited for the Philippines' recent economic growth [34] resulting to investment status upgrades from credit ratings agencies such as Fitch and S&P.

Regional Accounts[edit]
Gross Regional Domestic Product (GRDP) is GDP measured at regional levels.

Region

GRD P (in billio n PHP)

Agricultur e (in billion PHP)

% of GRD P

Industr y (in billion PHP)

% of GRD P

Service s (in billion PHP)

% of GRD P

per capit a GRD P

Metro Manila

3,479.90 5

17.891

0.51

591.035

16.98

2,870.979

82.50 288,062

Cordillera

210.079

21.082

10.04

116.522

55.47

72.474

34.50 127,614

Ilocos

293.918

75.097

25.55

79.448

27.03

139.372

47.42

61,076

Region

GRD P (in billio n PHP)

Agricultur e (in billion PHP)

% of GRD P

Industr y (in billion PHP)

% of GRD P

Service s (in billion PHP)

% of GRD P

per capit a GRD P

Cagayan Valley

167.492

71.769

42.85

17.805

10.63

77.919

46.52

51,100

Central Luzon

882.806

145.975

16.54

373.250

42.28

363.580

41.18

85,186

CALABARZON

1,644.84 3

108.940

6.62 1,015.501

61.74

520.401

31.64 126,589

MIMAROPA

176.176

48.028

27.26

65.135

36.97

63.013

35.77

62,995

Bicol

206.619

57.728

27.94

44.855

21.71

104.036

50.35

37,526

Western Visayas

395.417

115.613

29.24

66.238

16.75

213.565

54.01

54,870

Central Visayas

601.880

51.890

8.62

213.968

35.55

336.023

55.83

86,880

Eastern Visayas

242.594

58.434

24.09

104.207

42.96

79.952

32.96

58,335

Zamboanga Peninsula

200.883

66.206

32.96

51.762

25.77

82.915

41.28

57,815

Northern Mindanao

467.100

115.283

31.40

102.251

27.85

149.566

40.74

93,628

Davao Region

408.450

104.792

25.66

112.821

27.62

190.837

46.72

89,552

Region

GRD P (in billio n PHP)

Agricultur e (in billion PHP)

% of GRD P

Industr y (in billion PHP)

% of GRD P

Service s (in billion PHP)

% of GRD P

per capit a GRD P

SOCCSKSARGE N

261.548

97.932

37.44

71.445

27.32

97.171

35.24

62,080

Caraga

99.037

30.248

27.56

26.583

24.22

52.934

48.22

44,472

Muslim Mindanao

86.048

58.287

67.74

3.641

4.23

24.120

28.03

26,004

Total

9,735.52 1

1,245.196

12.79

3,056.468

31.40

5,433.857

55.81 103,366

Note: Green-colored cells indicate higher value or best performance in index, while yellow-colored cells indicate the opposite.

Economic indicators and international rankings[edit]

Further information: Philippine investment climate As of Change from previous

Organization

Title

Ranking

International Monetary Fund

Gross Domestic Product (PPP)

2012

1)

31st

[64]

International Monetary Fund

Gross Domestic Product (nominal)

2012

3)

40th

[65]

International Monetary Fund

GDP per Capita (PPP)

2011

126th

[66]

International Monetary Fund

GDP per Capita (nominal)

2011

1)

124th

[67]

Organization

Title

As of

Change from previous

Ranking

International Monetary Fund

Foreign Reserves

2012

25th

[68]

United Nations

Population

2012

12th

[69]

United Nations

Area

2012

73rd

[70]

United Nations

Population Density

2010

45th

[71]

Central Intelligence Agency

Life Expectancy

2011

133rd out of [72] 221st

United Nations

Literacy Rate

2011

84th out of [73] 182nd

The World Factbook

External Debt

2010

46th

[74]

World Tourism Organization

Tourist Arrival

2010

1)

52 out of 198

[75]

United Nations

Human Development Index 2011

1)

112 out of [76] 187

World Economic Forum

Global Competitiveness

2012

10)

65 out of 144

[77]

Fraser Institute

Economic Freedom of the World

2012

16)

61 out of 144

[78]

World Economic Forum

Global Gender Gap Report 2011

1)

8 out of 135

[79]

Organization

Title

As of

Change from previous

Ranking

World Economic Forum

Travel and Tourism Competitiveness

2011

94 out of 139

[80]

World Economic Forum

Global Enabling Trade Report

2012

20)

72 out of 132

[81]

World Bank

Ease of Doing Business

2013

2)

138 out of [82] 183

Transparency International

Corruption Perceptions Index

2012

24)

105 out of [83] 176

Heritage Foundation/The Wall Street Journal

Index of Economic Freedom

2013

10)

97 out of 177

[84]

The Economist Intelligence Unit Global Peace Index

2012

3)

133 out of [85] 158

Reporters Without Borders

Press Freedom Index

2011

16)

140 out of [86] 178

World Economic Forum

Financial Development Index

2011

44 out of 60

[87]

Government budget[edit]
Main article: Fiscal policy of the Philippines The national government budget for 2012 has set the following budget allocations: Noticeably enough, [97] the Department of Science & Technology is not reflected in the chart below which underlines the Philippine government's need to invest more on education, particularly in the sciences and engineering [34] fields to solidify its current growth momentum.
[96]

Budget Allocation

Millions of Pesos Millions of US Dollars (PHP) (USD)

Department of Education

238,800

$5,513.7

13.15

Department of Public Works and Highways

126,400

2,918.5

6.96

Department of National Defense

108,100

2,496.0

5.95

Department of Interior and Local Government

99,800

2,304.3

5.50

Department of Agriculture

61,400

1,417.7

3.38

Department of Social Welfare and Development

48,800

1,126.8

2.69

Department of Health

45,800

1,057.5

2.52

Department of Transportation and Communications 34,700

801.2

1.91

State Universities and Colleges

25,800

595.7

1.42

Department of Finance

23,600

544.9

1.30

Department of Environment and Natural Resources 17,500

404.1

0.96