Philippine
Economic Growth
One of the unique elements of the Philippines economy is the fact that most of the products produced within the nation are often exported to foreign markets. In the latest global ranking, Philippines is rated as the 47th largest economy in the world. The forces behind the export industry have been noted to be very complex and hence the nation is classified as the 49th most complex country to deal with in the export industry. Complexity is known to rise from elements including their currency, corruption as well as the processes of clearing goods for import and export (Cruz 6). The government has been known to be the most crucial player when it comes to researching on better ways that would ensure a more vibrant export market.
Unemployment
In spite of the numerous efforts made by the government, the nation still faced the crisis of unemployment. According to data produced in January 2016, the numbers stood at 5.8%. These figures can still be seen as an improvement being that in the year before, the numbers were 6.6% (Staff, Philippines Economic Development). Additionally, the unemployment rate for the last two decades averaged 8.75%.
SMEs
The small and medium-sized enterprises have been known to be among the strongest contributors to the economic growth of Philippines. As much as some of the products and services in this industry can be regarded as small and almost irrelevant, over the last few years, they have witnessed a steady growth of products being traded in within this industry. Some of the products are key in the export industry by fetching in significant forex. Most of these industries have been market as being ideal for the overall economic growth of the nation. The impact is expected to be significant, in particular with the realized increased international demand for the products emanating from this industry. It has also emerged as a sustainable source of employment for many people.
The wood and furniture industry stands out to be a major contributor to the economic development in the Philippines. The nation has a unique variety of timberwork sourced from all over the nation. The people working on the products are from both the informal and the formal furniture market and hence making it very vibrant (Staff, Philippines Economic Development). Bamboo and rattan products have been noted to be among the best sellers, and the western market has proven to be an excellent source of market for these commodities. It is estimated that this market will have expanded to more than 400% by the year 2020. The nation has a great source of raw material for the production of these products.
Agri-food products show potential to increase the economic power of the nation. The Philippines has a wide range of agricultural land. This allows it to be able to grow and sell some of these products. With an increase in the use of technology in the farming techniques, the nation has been able to produce surplus supplies and hence export these products (Staff, Philippines: Economy). Farmers who focused on subsistence farming are given an opportunity to earn income by fully utilizing the farmland that is availed to them naturally. America and the Middle East are the biggest markets for this food produce, and this can be attributed to the practice of halal. Specific products including sugar have seen a 21% increase in a span of five years. The government has been seen to offer subsidies to other farm products including bananas and rice, products that also show potential to fetch forex.
The Philippines small and medium-sized industries, focusing on household items have always seen a blast in sales. Most of them specialize in the making of “Kababayans”, products made from indigenous supplies. The traditional nature makes them unique to the nation and hence the demand has always been on the rise (Staff, Philippines Economic Development). A major market for these products has been the Philippines who have migrated in other nations. Foreigners have been known to buy these products as souvenirs, after visiting the nation.
Large scale industries
The Philippines is among the biggest suppliers of electronic products in the world today. The nation has been able to mold a population that is technologically savvy and can design and assemble an assortment of gadgets. In 2008, there was a high demand for computer based products as people started enjoying fast and reliable internet. The government took the initiative to ensure that the nation is exposed to the right resources, and hence, develop multiple products. The nation focuses on producing the fast moving consumer goods and hence multinational technology-based companies have been seen to set firm bases throughout the country. Statistics show that the electronic and gadget industry accounts for 51% of the nation’s earnings, in regards to exports (Staff, Philippines Economic Development). Measures have been taken to ensure that it is protected, and foreign direct investors are still encouraged to invest in the nation.
According to recent statistics, Philippines is still among the countries in the world that have negative balance of trade. In 2013, the nation exported a total of $76.3billion worth of goods. On the other hand, it imported goods worth $76.7 billion. The negative national balance of trade stood at $340 million. The nation is experiencing a steady growth in the export industry being that the figures have never dropped to below 2%. The lowest period of growth was in 2008, and this drop went as low as 2.4%. The global market for electronic and technology-based products has been known to increase at a high rate. These are among the elements that put the Philippines in an exquisite position. The nation has been able to specialize in the integrated circuit industry and hence exported products worth billions. In 2014, Philippines integrated circuit export market represented 24.9% of the total export earnings. Other products including computers contributed to about 7.9% of the total export (Asian Development Bank 12).
China stands out to be among the biggest importer of Philippines products. The Chinese market is known to be vibrant and hence imported $16.1 billion worth of goods in 2013. These numbers have been seen to increase due to the rise in the demand for electronics. The other big importer of Philippine products is Japan, and it received goods worth $10.1 billion in 2014. The United States, Hong Kong, and Singapore follow systematically (Cruz 8).
From statistics in the period between 2015 and 2016, it is clear that Philippines had a GDP of 6.4. During the same period, it experienced an inflation rate of 3.0, and this was mainly attributed to the dynamic nature of the international market. The national current account balance (share of GDP) is placed at 3.6. Apart from exports, the national economic growth can be attributed to an increase in the consumption of the products that they produce. Household consumption of domestic products also enjoys a steady growth rate. Private investments in diverse industries also contribute to the rise in economic performance.
Works Cited
Asian Development Bank Philippines: Economy. Economic Statistics. Manila: Asian Development Bank, 2015. Print.
Cruz, John Dela. “Top 10 Philippine Exports For Small To Medium Scale Businesses.” Manila Trade (2015): 3-8. Print.
Staff. Philippines Economic Development. 18 02 2016. Web. 17 03 2016.