Philippines Economy - 2004

Economy - overview:
The Philippines was less severely affected by the Asian financial crisis of 1998 than its neighbors, aided in part by annual remittances of $6-7 billion from overseas workers. From a 0.6% decline in 1998, GDP expanded by 2.4% in 1999, and 4.4% in 2000, but slowed to 3.2% in 2001 in the context of a global economic slowdown, an export slump, and political and security concerns. GDP growth accelerated to 4.4% in 2002 and 4.2% in 2003, reflecting the continued resilience of the service sector, gains in industrial output, and improved exports. Nonetheless, it will take a higher, sustained growth path to make appreciable progress in poverty alleviation given the Philippines' high annual population growth rate and unequal distribution of income. The MACAPAGAL-ARROYO Administration has promised to continue economic reforms to help the Philippines match the pace of development in the newly industrialized countries of East Asia. The strategy includes improving the infrastructure, strengthening tax collection to bolster government revenues, furthering deregulation and privatization of the economy, enhancing the viability of the financial system, and increasing trade integration with the region. Prospects for 2004 will depend on the economic performance of two major trading partners, the US and Japan, and on increased confidence on the part of the international investment community.

GDP:
purchasing power parity - $390.7 billion (2003 est.)

GDP - real growth rate:
4.5% (2003 est.)

GDP - per capita:
purchasing power parity - $4,600 (2003 est.)

GDP - composition by sector:
agriculture: 15%
industry: 35%
services: 50% (2003 est.)

Population below poverty line:
40% (2001 est.)

Household income or consumption by percentage share:
lowest 10%: 1.7%
highest 10%: 38.4% (2000)

Distribution of family income - Gini index:
48.1 (2000)

Inflation rate (consumer prices):
3.1% (2003 est.)

Labor force:
34.6 million (2003)

Labor force - by occupation:
agriculture 45%, industry 15%, services 40% (2003 est.)

Unemployment rate:
11.4% (2003)

Budget:
revenues: $10.9 billion
expenditures: $15.1 billion, including capital expenditures of $2.4 million $NA (2002)

Industries:
electronics assembly, textiles, pharmaceuticals, chemicals, wood products, food processing, petroleum refining, fishing

Industrial production growth rate:
3.7% (2002 est.)

Electricity - production:
45.21 billion kWh (2001)

Electricity - production by source:
fossil fuel: 55.6%
hydro: 17.5%
other: 26.9% (2001)
nuclear: 0%

Electricity - consumption:
42.04 billion kWh (2001)

Electricity - exports:
0 kWh (2001)

Electricity - imports:
0 kWh (2001)

Oil - production:
8,460 bbl/day (2001 est.)

Oil - consumption:
343,000 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Oil - proved reserves:
164 million bbl (1 January 2002)

Natural gas - production:
10 million cu m (2001 est.)

Natural gas - consumption:
10 million cu m (2001 est.)

Natural gas - exports:
0 cu m (2001 est.)

Natural gas - imports:
0 cu m (2001 est.)

Natural gas - proved reserves:
104.6 billion cu m (1 January 2002)

Agriculture - products:
rice, coconuts, corn, sugarcane, bananas, pineapples, mangoes, pork, eggs, beef, fish

Exports:
$34.56 billion f.o.b. (2003 est.)

Exports - commodities:
electronic equipment, machinery and transport equipment, garments, coconut products, chemicals

Exports - partners:
US 24.7%, Japan 15%, Netherlands 8.7%, Taiwan 7.1%, Singapore 7%, Hong Kong 6.7%, Malaysia 4.7% (2002)

Imports:
$35.97 billion f.o.b. (2003 est.)

Imports - commodities:
raw materials, machinery and equipment, fuels, chemicals

Imports - partners:
US 20.6%, Japan 20.4%, South Korea 7.8%, Singapore 6.5%, Taiwan 5%, Hong Kong 4.5% (2002)

Debt - external:
$56.7 billion (2003)

Economic aid - recipient:
ODA commitments, $1.2 billion (2002)

Currency:
Philippine peso (PHP)

Currency code:
PHP

Exchange rates:
Philippine pesos per US dollar - 54.2 (2003), 51.6 (2002), 50.99 (2001), 44.19 (2000), 39.09 (1999)