The economy of the Philippines is the world’s 27th largest economy by nominal GDP according to the International Monetary Fund 2021 and the 10th largest economy in Asia. The Philippines is one of the emerging markets and the 3rd highest in Southeast Asia by GDP nominal after Thailand and Indonesia. As of 2021, GDP by purchasing power parity was estimated to be at $1.47 trillion, the 18th in the world.
The following tables and chart will tell the change details in last 5-10 years:
Philippines Distribution of workforce from the last 5 years
Philippines Distribution of GDP across economic sectors:
Here attached the last 10 years chart of Philippines GDP: (amount in billion USD):
3 Sectors of the Economy – Agriculture, Industry and Services:
Agriculture is an important part in the Philippines’ economy. It employs almost 23.41% of the total workforce and contributed almost 8.82% in GDP.
The Philippines is one of the most vulnerable agricultural systems to extreme weather events like monsoons, which are expected to create more uncertainty as climate change effects the Philippines.
The Philippines only has two agricultural products that earn at least $1 billion per year in export receipts: bananas; and coconut products (mostly in oil form). Thailand has 13 types of farm exports earning over $1 billion each year, Indonesia has five, and Vietnam has seven.
Major products in this Sector:
Coconut: The Philippines is the second largest producer of coconut products in the world, next to Indonesia. The coconut industry is also one of the major sources of employment generation in the Philippines. The export value of Philippines was USD 2.52M, and the export volume was 1.78M metric ton in 2020. Production in the Philippines is generally concentrated in medium-sized farms. There are 3.5 million hectares dedicated to coconut production in the Philippines, which accounts for 25 per cent of total agricultural land in the country.
Rice: Rice is the most important food crop, a staple food in most of the country. Rice is the most important food crop, a staple food in most of the country. In 2019, the volume of rice produced in the Philippines amounted to approximately 18.9 million metric tons. While, Philippines is the biggest importer of rice in the world. The value of rice imported to the Philippines totaled USD 1,009 million in 2019, a rise from 2018’s USD 736 million. Philippines imported about 6,647,558 tons of rice in 2019. According to Philippines import data, Philippines imported rice the most to Vietnam, which shared around 70% value to total imports.
Agriculture Subsidy in Philippines:
The level of support to farmers, measured as a share of gross farm receipts (%PSE), averaged 27% in 2017-19. This is higher than the OECD average and one of the highest among all emerging economies covered by this report.
Market price support (MPS), which reflects the existing trade barriers (mainly tariffs and Tariff Rate Quotas – TRQs), is the dominant form of support to Philippine producers. Rice producers are the main beneficiaries of the price support policies. In addition to rice, substantial levels of support are provided to sugarcane, pig meat, and poultry, in particular through high import tariffs. The high level of MPS comes with an implicit taxation of primary consumers including the food processing industry.
Industry is an important part in the Philippines’ economy. It accounts for 30.17% of GDP and employed almost 19.44% of the workforce.
Major Industries in this Sector:
Electrical Products: In 2019, the manufacturing value added by the electrical machinery and equipment industry in the Philippines amounted to around 48.56 billion Philippine pesos. In 2019, Philippines exported $2.41B in Electrical Transformers, making it the 7th largest exporter of Electrical Transformers in the world. At the same year, Transformers was the 5th most exported product in Philippines. The main destination of Electrical Transformers exports from Philippines are: United States ($581M), China ($294M), Hong Kong ($184M), Netherlands ($172M), and Japan ($163M).
Aerospace: In 2019, the total export output of aerospace products in the Philippines reached US$2 billion. 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.
Service sector is an important part in the Philippines’ economy. It contributes almost 61% in the GDP and employed almost 57.16% of the total Philippines’ workforce.
Major Industries in this sector:
Finance: In 2019, the financial intermediation services sector accounted for a value added of approximately 7.4 percent of GDP in the Philippines. The banking sector comprises 43 commercial or universal banks; 57 thrift banks, including savings and mortgage banks, private development banks, stock savings and loan associations, and microfinance institutions; and 495 rural and cooperative banks. Commercial banks dominate the sector, accounting for more than 90% of total sector assets. Banks are the most important segment of the financial services sector and the primary source of credit for the domestic economy, with the sector’s gross value added standing at 8.6% of GDP in 2018.
Tourism: Tourism is an important sector for Philippine economy. In 2019, the travel and tourism industry contributed 12.7% to the country’s GDP. Philippines is an archipelagic country composed of 7,641 islands with 81 provinces divided in 17 regions. The country is known for having its rich biodiversity as its main tourist attraction. Its beaches, heritage towns and monuments, mountains, rainforests, islands and diving spots are among the country’s most popular tourist destinations. Philippines records 8 million foreign tourists in 2019.
Top Companies in Philippines:
|Company Name||Sector||Market Cap (USD)|
|SM Investments Corporation||Finance||23.940B|
|BDO Unibank||Financial Services||13.628B|
|Manila Electric Company||Utilities||7.033B|
|Jollibee Foods Corporation||Retail||4.665B|
|Security Bank Corporation||Banking||2.893B|
|Robinsons Land Corporation||Real Estate||2.817B|
|Mega World Corporation||Real Estate||2.549B|
|Alliance Global Group||Conglomerate||2.227B|