Demographics of the Philippines are records of human population in the country, including its population density, ethnicity, education level, health, economic status, religious affiliations, and other aspects of the population. The Philippines has a population growth rate of 2.04%, one of the highest in Asia.According to the 2010 Census, the population of the Philippines was 92,337,852.
The Agtas, an indigenous dark-skinned people consist of multiple tribes form a minority of the population. The majority of Filipinos are made up of various ethnolinguistic Austronesian ethnic groups. The indigenous population are closely related to Micronesians, Guamanians, Palauans, Malaysians, Indonesians, Malagasy and other Pacific Island people. Mestizos, those of part Filipino descent mixed with Spanish and European are a minority but are viewed and treated as Filipino. Ethnic groups that remain unassimilated, such as various recent Japanese,Chinese, Indian, Arab,and others form a minority of the population.
The most commonly spoken language is Filipino, which is based on the Tagalog language. Filipino and English are the official languages. Additionally, there are between 120 to 170 distinct indigenous Philippine languages (depending on their classification), a dozen of which have over one million speakers and are recognized as official regional languages. Spanish and Arabic are recognized as voluntary and optional languages in the Philippine constitution. Christianity is the main religion, with Roman Catholicism making up the majority of the population. Other religions include Islam, Buddhism, Hinduism, and those with no religion.[4] The people of the Philippines are known as Filipinos.
Population history
200px-Philippines_Population_Density_Map
magnify-clip
Philippines population density Map per province as of 2009 per square kilometer:
0-50 51-100 101-200 201-300 301-400 401-800 801-1600
The first census in the Philippines was founded in 1591, based on tributes collected. Based on this tribute counting, there were about 666,712 people in the islands. In 1600, this method was revamped by the Spanish officials, who then based the counting of the population through church records. In 1799, Friar Manuel Buzeta estimated the population count as 1,502,574. However, the first official census was conducted only in 1878, when the population as of midnight on December 31, 1877 was counted. This was followed by two more censuses, namely, the 1887 census, and the 1898 census. The 1887 census yielded a count of 6,984,727, while that of 1898 yielded 7,832,719 inhabitants.
Population growth of the Philippines
Manila, 219,928
Laoag, Ilocos Norte 19,699
Iloilo, Iloilo 19,054
Cebu, Cebu 18,330
Nueva Caceres, Camarines Sur 10,021
Romblon, Romblon 10,095
There were 13,400 villages, nearly 75% of which had fewer than 600 inhabitants. Philippine census surveys In 1960, the government of the Philippines conducted a survey on both population, and housing. The population was pegged at 27,087,685. Successive surveys were again conducted on 1970, 1975, 1980, and 1990, which gave the population as 36,684,948, 42,070,660, 48,098,460, and 60,703,206 respectively. On 1995, the POPCEN was launched, undertaken at the month of September, The data provided the bases for the Internal Revenue Allocation to local government units, and for the creation of new legislative areas. The count was made official by then President Fidel Ramos by Proclamation No, 849 on August 14, 1995, The population was 68,616,536. According to the executive director of the Commission on Population Tomas Osias, the population of the Philippines may reach 101.2 million by 2014. Despite this, attempts to introduce a reproductive health law to bring down the population growth rate has been consistently opposed by the Catholic Church, the dominant religion of the country.
1960
1970
1975
1980
1990
1995
2000
2007
2010
27,087,685
36,684,948
42,070,660
48,098,460
60,703,206
68,616,536
76,504,077
88,574,614
92,337,852
UN estimates
World Population Prospects, 2010
Period
Live births per year
Deaths per year
Natural change per year
CBR1
CDR1
NC1
TFR1
IMR1
1950-1955
981 000
269 000
712 000
48.6
13.3
35.3
7.42
96.8
1955-1960
1 095 000
285 000
810 000
45.7
11.9
33.8
7.27
86.5
1960-1965
1 218 000
299 000
919 000
43.0
10.6
32.5
6.98
77.4
1965-1970
1 334 000
311 000
1 023 000
40.4
9.4
31.0
6.54
67.8
1970-1975
1 461 000
326 000
1 136 000
38.3
8.5
29.8
5.98
59.3
1975-1980
1 643 000
346 000
1 297 000
37.4
7.9
29.5
5.46
51.8
1980-1985
1 801 000
368 000
1 433 000
35.6
7.3
28.3
4.92
45.2
1985-1990
1 968 000
393 000
1 575 000
34.0
6.8
27.2
4.53
39.5
1990-1995
2 084 000
419 000
1 664 000
31.8
6.4
25.4
4.14
34.5
1995-2000
2 216 000
450 000
1 766 000
30.2
6.1
24.1
3.90
30.1
2000-2005
2 360 000
487 000
1 873 000
29.0
6.0
23.0
3.70
26.3
2005-2010
2 318 000
528 000
1 790 000
25.9
5.9
20.0
3.27
23.0
1 CBR = crude birth rate (per 1000); CDR = crude death rate (per 1000); NC = natural change (per 1000); TFR = total fertility rate (number of children per woman); IMR = infant mortality rate per 1000 births
Ethnic groups
The majority of the people in the Philippines are of Austronesian descent. The largest of these groups are the Visayan, Tagalog, Ilocano, Bicolano, Moro, the Kapampangan and among others. The indigenous peoples of the Philippines form a minority of the population. Other ethnic groups include the Spaniard, Indian, Chinese, American, Japanese, Arab, Korean, and other ethnic groups from other countries.
Languages
There are between 120 and 170 languages spoken in the country. Most of them have several varieties (dialects), totaling over 300 across the archipelago. Since the 1930s the government has promoted the use of the national language, Filipino, based on Tagalog. Visayan languages (also called Bisaya or Binisaya) are widely spoken throughout the Visayas, and in some parts of Mindanao. The Ilokano language is the lingua franca of the Northern Luzon.
English is considered an official language for purposes of communication and instruction. Consequently, it is widely spoken and understood. The other non-indigenous languages commonly used is Arabic language, and the Spanish.
Religion
About 75 to 80 per cent of Filipinos are Roman Catholics, about 1% are irreligious, about 4.2% are adherents of Islam, and about 15% are Protestant Christians. Other Christian denominations include the Philippine Independent Church (more commonly called the Aglipayan Church), Iglesia ni Cristo (one of a number of separate Churches of Christ generally not affiliated with one another), and The Church of Jesus Christ of Latter-day Saints (Mormon). Minority religions include Buddhism, Hinduism, and Judaism.
Roman Catholics and Protestants were converted during the four centuries of Western influence by Spain, and the United States. Under Spanish rule, much of the population was converted to Christianity.
Orthodox Christians also live in Philippines. Protestant Christianity arrived in the Philippines during the 20th century, introduced by American missionaries.
Islam was brought to the Sulu Archipelago in the 14th century by Makhdum Karim, an Arab trader, and to Mindanao island by Rajah Kabungsuwan, a Malaccan nobleman. From then onwards, Muslim princes carried on expeditions to propagate Islam. While Islam was easily displaced over the years among the peoples of Luzon, and the Visayas, it retained a foothold in the central parts of Mindanao and the Sulu Archipelago.
Other religions include Judaism, Mahayana Buddhism, often mixed with Taoist beliefs, Hinduism, and Sikhism. Animism and Paganism are also followed.
Education
Education in the Philippines is based on both Western and Eastern ideology and philosophy influenced by the United States, Spain, and its neighbouring Asian countries. Philippine students enter public school at about age four, starting from nursery school up to kindergarten. At about seven years of age, students enter elementary school (6 to 7 years). This is followed by high school (4 years) and senior high school (2 years). Students then take the college entrance examinations (CEE), after which they enter university (3 to 5 years). Other types of schools include private school, preparatory school, international school, laboratory high school, and science high school. School year in the Philippines starts from June, and ends in March with a two-month summer break from April to May, one week of semestral break in October, and a week or two during Christmas and New Year holidays.
Starting on in SY 2011-2012 there will be a phased implementation of a new program. The K to 12 Program covers kindergarten and 12 years of basic education (six years of primary education, four years of junior high school, and two years of senior high school [SHS]) to provide sufficient time for mastery of concepts and skills, develop lifelong learners, and prepare graduates for tertiary education, middle-level skills development, employment, and entrepreneurship.
CHAPTER 2
ECONOMIC OVERVIEW OF PHILIPPINES
198198
ECONOMIC OVERVIEW OF PHILIPPINES
DATA ON GDP AND ECONOMIC INFORMATION
Central bank
Bangko Sentral ng Pilipinas
International Reserves
US$ 75.174 billion (Source: IMF; Data updated: November 2011)
Gross Domestic Product - GDP
US$ 227.584 billion (2011 estimate)
GDP (Purchasing Power Parity)
411.903 billion of International dollars (2011 estimate)
Real GDP growth
2001
2002
2003
2004
2005
2006
2007
2008
1.8%
4.4%
4.9%
6.4%
5%
5.3%
7.1%
4.2%
2009
2010
2011
2012*
1.1%
7.6%
3.7%
4.2%
*Estimate
GDP per capita - current prices
US$ 2,329 (2010 estimate)
GDP per capita - PPP
$4,214 International Dollars (2010 estimate)
GDP (PPP) - share of world total
1980
1990
2000
2010
2015**
0.53%
0.46%
0.42%
0.49%
0.51%
**Forecast
GDP - composition by sector
agriculture: 12.3%
industry: 33.3%
services: 54.4% (2011 estimate)
(Data released on February 2012)
Gross domestic expenditure on R&D (% of GDP)
N/A
(Data released on March 2012)
Inflation
2009
2010
2011
2012*
4.2%(2008)
3.8%
4.8%
3.4%
*Estimate
Unemployment rate
2009
2010
2011
2012*
7.5%
7.3%
7%(2009)
7%
*Estimate
Household saving rates
N/A
(Data released on December 2011)
Public debt (General government gross debt as a % of GDP)
2008
2009
2010
2011
2012*
44.2%
44.3%
42.2%
40.5%
40.1%
*Estimate
Public deficit (General government net lending/borrowing as a % of GDP)
2008
2009
2010
2011*
2012**
0%
-2.7%
-2.2%
-0.8%
-1.9%
*Estimate **Forecast
Government bond ratings
Standard & Poor's: BB-/Stable/B
Moody's rating: Ba3
Moody's outlook: STA
(Foreign Currency Government Bond Ratings; Data last updated Nov 2010)
Market value of publicly traded shares
2007
2008
2009
US$103.224 billion
US$52.101 billion
US$80.132 billion
Largest companies in The Philippines
San Miguel (Beverages), PLDT-Philippine LDT (Telecommunications services), SM Investments (Department Stores)
(2011)
Economy of the Philippines
Makati skyline j 0 n.jpg
Makati, financial capital of the Philippines
Currency
Philippinepeso(PHP)=100centavos(English)
piso = 100 sentimo (Filipino)
Fiscal year
Calendar year
Trade organizations
APEC, ASEAN, WTO, EAS, Asian Development Bank, ASEAN Plus Three, and others
Statistics
GDP
$224.8 billion nominal(2011)
$411.903 billion PPP (2011
GDP growth
6.1% (First Half of 2012)
GDP per capita
$2,345 (2011(nominal 126th)
$4,080 (2011) (PPP 126th)
GDP by sector
agriculture (12.3%), industry (33.3%), services (54.4%) (2011 est.)
Inflation (CPI)
3.1% (October 2012)
Population
belowpoverty line
national-22.9%(2006est.)
international-22.6%(2006)
regional - 27% (2006)
Gini coefficient
43.0 (2009)
Labor force
59.81 million (2011 est.)
Labor force
by occupation
services (52%) agriculture (33%), industry (15%) (2010 est.)
Unemployment
1.9% (April 2012)
Main industries
electronics assembly, garments, footwear, pharmaceuticals, chemicals, wood products, food processing, petroleum refining, fishing
Ease of Doing Business Rank
136th of 183 countries ranked
External
Exports
$48.0 billion (2011)
Export goods
semiconductors and electronic products, transport equipment, garments, copper products, petroleum products, coconut oil, fruits
Main export partners
Japan 18.5%, United States 14.8%, China 12.7%, Singapore 8.9%, Hong Kong 7.7%, South Korea 4.6%, Taiwan 4.2%, Thailand 4.0%, Netherlands 3.6%, Germany 3.5% (2011)
Import goods
electronic products, mineral fuels, machinery and transport equipment, iron and steel, textile fabrics, grains, chemicals, plastic
Main import partners
Japan 10.8%, United States 10.8%, China 10.1%, Singapore 8.1%, South Korea 7.3%, Taiwan 6.9%, Thailand 5.8%, Saudi Arabia 5.4%, Malaysia 4.4%, Indonesia 3.9% (2011)
Gross external debt
$32.431 billion (September 2011)
Public finances
Revenues
$31.38 billion (2011)
Expenses
$35.95 billion (2011)
Economic aid
$1.67 billion
Credit rating
Standard&Poor's:
BB+(Domestic)
BB+(Foreign)
BB+(T&CAssessment)
Outlook: Stable
Moody's:
Ba1
Outlook: Stable
Fitch:
BB+
Outlook: Stable
Foreign reserves
$82.09 billion (October 2012)
Main data source: CIA World Fact Book
All values, unless otherwise stated, are in US dollars
The Economy of the Philippines is the 43rd largest in the world, according to 2011 World Bank statistics and it is also one of the emerging markets in the world.According to the CIA Factbook, the estimated 2011 gross domestic product (purchasing power parity) was $411.9 billion (2011 est.) The Goldman Sachs estimates that by the year 2050, it will be the 14th largest economy in the world and one in its list of the Next Eleven economies. HSBC projects the Philippine economy to become the 16th largest economy in the world, 5th largest economy in Asia and the largest economy in the South East 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. As a newly industrialized country, the Philippine economy has been transitioning from one based on agriculture to one based more on services and manufacturing.
The Philippines is one of the Tiger Cub Economies in Southeast Asia together with Indonesia, Malaysia and Thailand.
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.
It has not suffered from the downturn in the world economy that began in 2007.
A chart of selected statistics showing trends in the gross domestic product of the Philippines using data taken from the International Monetary Fund.
Year
GDP growth in percent
(constant prices, base year = 2000)
GDP
in PHP Billion
(current prices)
GDP
in USD Billion
(current prices)
GDP per capita
in USD
(current prices)
GDP
in USD Billion
(PPP)
GDP per capita
in USD
(PPP)
Peso vs Dollar
Exchange Rate
1980
5.15
270.1
35.9
744
64.4
1334
7.51
1981
3.42
312.0
39.5
797
72.9
1471
7.90
1982
3.62
351.4
41.1
810
80.1
1578
8.54
1983
1.88
408.9
36.8
707
84.9
1630
11.11
1984
-7.32
581.1
34.8
652
81.6
1530
16.70
1985
-7.31
633.6
34.1
623
77.9
1426
18.61
1986
3.42
674.6
33.1
591
82.4
1471
20.39
1987
4.31
756.5
36.8
641
88.4
1540
20.57
1988
6.75
885.5
42.0
715
97.6
1663
21.09
1989
6.21
1025.3
47.3
786
107.6
1791
21.70
1990
3.04
1190.5
48.9
796
115.2
1873
24.33
1991
-0.58
1379.9
50.2
797
118.6
1882
27.48
1992
0.34
1497.5
58.7
912
121.8
1891
25.51
1993
2.12
1633.6
60.2
914
127.1
1929
27.12
1994
4.39
1875.7
71.0
1052
135.5
2007
26.42
1995
4.68
2111.7
83.7
1224
144.8
2118
25.24
1996
5.85
2406.4
93.5
1336
156.1
2232
24.74
1997
5.19
2688.7
92.8
1297
167.1
2336
28.98
1998
-0.58
2952.8
73.8
1009
168.1
2297
40.02
1999
3.08
3244.2
83.0
1110
175.8
2352
39.09
2000
4.41
3580.7
81.0
1053
187.5
2437
44.19
2001
2.89
3888.8
76.3
971
197.3
2511
50.99
2002
3.65
4198.3
81.4
1014
207.8
2591
51.60
2003
4.97
4548.1
83.9
1025
222.7
2720
54.20
2004
6.70
5120.4
91.4
1093
242.7
2905
56.04
2005
4.78
5677.8
103.1
1209
261.0
3061
55.09
2006
5.24
6271.2
122.2
1405
283.5
3260
51.31
2007
6.62
6892.7
149.4
1684
311.1
3507
46.15
2008
4.15
7720.9
173.6
1919
331.2
3661
44.47
2009
1.15
8026.1
168.5
1827
338.5
3670
47.64
2010
7.63
9003.5
199.6
2123
368.5
3920
45.11
2011
3.72
9734.8
224.75
2345
391.1
4080
43.31
GDP growth at constant 1985 prices in Philippine pesos:
Year
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
GDP growth %
4.6
4.9
4.8
9.2
5
6.4
8
5.6
5.2
5.6
Year
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
GDP growth %
5.149
3.423
3.619
1.875
-7.324
-7.307
3.417
4.312
6.753
6.205
Year
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
GDP growth %
3.037
-0.578
0.338
2.116
4.388
4.679
5.846
5.185
-0.577
3.082
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
GDP growth %
4.411
2.894
3.646
4.970
6.698
4.778
5.243
7.117
4.153
1.148
7.632
3.718
Composition by sector
As a newly industrialized country, the Philippines is still an economy with a large agricultural sector; 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 OFWs-are a significant contributor to the economy but are not reflected in the below sectoral discussion of the domestic economy.
Agriculture and fishing
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.
Industry
Automotive
The ABS used in Mercedes-Benz, BMW, and Volvo cars are made in the Philippines. Ford, Toyota, Mitsubishi, Nissan and Honda are the most prominent automakers manufacturing cars in the country.[citation needed] 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 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 cars to other countries in the region if monthly sales would reach 1,000 units.
Aerospace
Aerospace products in the Philippines are mainly for the export market and include manufacturing parts for aircraft built by both Boeing and Airbus. In 2011, the total export output of the Philippines reached US $3 billion.
Electronics
Intel has been in the Philippines for 28 years as a major producer of products, including the Pentium 4 processor. A Texas Instruments plant in Baguio has been operating for 20 years and is the largest producer of DSP chips in the world. Texas Instruments' Baguio plant produces all the chips used in Nokia cell 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
250px-Puhagan_geothermal_plant
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 States, and a recent discovery of natural gas reserves in the Malampaya oil fields off the island of Palawan 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 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 industry's overall decline. The industry rebounded starting in late 2004 when the Supreme Court upheld the constitutionality of an 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 specific part of the 1994 Mining Act that allows 100% foreign ownership of Philippines mines.
Service
Outsourcing
250px-Asiatown_IT_Park
Asiatown IT Park in Cebu
250px-Teletech_call_cent_BACOLOD
A business process outsourcing office in Bacolod
According to an IBM Global Location Trends Annual Report, as of December 2010[update] the Philippines has overtaken India as the world leader in business support functions such as shares services and business process outsourcing. The majority of the top ten BPO firms of the United States operate in the Philippines.[citation needed] 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 as Baguio, 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 million 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 1.3 million workers.
250px-Ortigas_Tonight
Ortigas Center
Economic indicators and international rankings
Organization
Title
As of
Change from previous
Ranking
International Monetary Fund
Gross Domestic Product (PPP)
2011
(Steady)
32nd
International Monetary Fund
Gross Domestic Product (nominal)
2011
(Steady)
45th
International Monetary Fund
GDP per Capita (PPP)
2011
(Steady)
126th
International Monetary Fund
GDP per Capita (nominal)
2011
(Increase 1)
124th
International Monetary Fund
Foreign Reserves
2012
25th
United Nations
Population
2012
(Steady)
12th
United Nations
Area
2012
(Steady)
73rd
United Nations
Population Density
2010
45th
Central Intelligence Agency
Life Expectancy
2011
133rd out of 221st
United Nations
Literacy Rate
2011
84th out of 182nd
The World Factbook
External Debt
2010
46th
World Tourism Organization
Tourist Arrival
2010
(Increase 1)
52 out of 198
United Nations
Human Development Index
2011
(Increase 1)
112 out of 187
World Economic Forum
Global Competitiveness
2012
(Increase 10)
65 out of 144
Fraser Institute
Economic Freedom of the World
2012
(Increase 16)
61 out of 144
World Economic Forum
Global Gender Gap Report
2011
(Increase 1)
8 out of 135
World Economic Forum
Travel and Tourism Competitiveness
2011
94 out of 139
World Economic Forum
Global Enabling Trade Report
2012
(Increase 20)
72 out of 132
World Bank
Ease of Doing Business
2012
(Increase 12)
136 out of 183
Transparency International
Corruption Perceptions Index
2011
129 out of 183
Heritage Foundation/The Wall Street Journal
Index of Economic Freedom
2012
(Increase 8)
107 out of 179
The Economist Intelligence Unit
Global Peace Index
2012
(Increase 3)
133 out of 158
Reporters Without Borders
Press Freedom Index
2011
(Increase 16)
140 out of 178
World Economic Forum
Financial Development Index
2011
44 out of 60
Statistics
250px-Philippines_wealth_chart
Percentage of population in 2007 living below poverty line, by province. Provinces with darker shades have more people living below the poverty line.
Government budget
The national government budget for 2012 has set the following budget allocations:
Budget Allocation
Millions of Pesos
(PHP)
Millions of US Dollars
(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
CHAPTER-3
TRADE AND COMMERCE OVERVIEW
TRADE AND COMMERCE OVERVIEW
Department of Trade and Industry (Philippines)
Kagawaran ng Kalakalan at Industriya
DTI Logo.png
Enabling Business, Empowering Consumers
Department overview
Formed
June 23, 1898
Headquarters
Industry & Investments Building, 385 Senator Gil Puyat Avenue, Makati
Annual budget
P2.118 billion (2011)
Department executive
Gregory Domingo
Website www.dti.gov.ph www.business.gov.ph
The Philippines' Department of Trade and Industry (Filipino: Kagawaran ng Kalakalan at Industriya), abbreviated as DTI is the executive department of the Philippine Government tasked to expand Philippine trade, industries and investments as the means to generate jobs and raise incomes for Filipinos. It acts as catalyst for intensified private sector activity in order to accelerate and sustain economic growth through comprehensive industrial growth strategy, progressive and socially responsible trade liberalization and deregulation programs and policymaking designed for the expansion and diversification of Philippine trade - both domestic and foreign.
The national organizational set up of the department include Trade and Investment Promotion Group (TIPG), Industry Development and Trade Policy Group (IDTPG), Consumer Welfare and Business Regulation Group (CWBRG), Regional Operations and Development Group (RODG), and the Management Services Group (MSG). Its hierarchical organization include 33 foreign trade service posts, 16 regional offices, 81 provincial/city/area offices, 13 bureaus, 7 attached agencies, 7 attached corporations, and 10 service offices. The department is headed by a Secretary (equivalent to Minister) and assisted by Undersecretaries (equivalent to Deputy Minister) which take charge of certain sub-department each, and Assistant Secretaries which serve as specialized assistants of the Secretary.
History
The Department of Trade and Industry had its beginnings on June 23, 1898 when President [Tomas Ebardone Guariña] formed three government agencies, the Departments of Navy, Commerce, Agriculture and Manufacturing.
On September 6, 1901, the Philippine Commission established the Department of Commerce (and Police). After World War II, President Manuel Roxas issued Executive Order (EO) No. 94 on October 4, 1947 creating the Department of Commerce and Industry (DCI). Cornelio Balmaceda, a much sought-after professor of economics and director of the Bureau of Commerce (BOC), was appointed acting secretary of the newly created Department of Commerce and Industry.
Prior to EO 94, the Bureau of Commerce was tasked to develop and promote the country's trade and industry, under the overall supervision of the Department of Agriculture and Commerce, as stipulated by Act 4007 by the Philippine Legislature, enacted on December 5, 1932.
By 1972, the DCI had grown into a big organization with 10 regular bureaus and 22 agencies under its direct supervision. The DCI was mandated to promote, develop, expand, regulate and control of foreign and domestic trade and industry, as well as tourism.
To have closer supervision and to ensure more effective delivery of services, President Ferdinand E. Marcos issued Presidential Decree (PD) 189 on May 11, 1973 creating the Department of Tourism to handle all tourism-related matters. A year later on June 21, 1974, Marcos issued PD 488 creating the Department of Industry whose principal function was to promote and enhance the growth of the country's existing and thriving industries.
On June 2, 1975, the Department of Trade was created under PD 721 to pursue efforts of the government toward strengthening the country's socio-economic development, particularly in the area of commercial activities. A key strategy of the new department was vigorous export promotion to generate much needed foreign exchange. A Bureau of Foreign Trade was also particularly established to push for domestic trade and marketing programs.
In the early 1980s, the Marcos government's goal of national economic development required the need to hew industrial promotion efforts with the expansion of Philippine trade overseas. This resulted in the creation of the Ministry of Trade and Industry (MOTI) on July 27, 1981, which took over the functions of the subsequently abolished Departments of Trade and of Industry.
Drastic changes followed after the 1986 EDSA Revolution. President Corazon Aquino signed Executive Order No. 133 on February 27, 1987 effectively reorganizing the Ministry of Trade and Industry and renaming it the Department of Trade and Industry (DTI). This was further strengthened by the issuance of Executive Order 292 (Administrative Code of 1987). Other latter legislations have also amended its functions and structures.
List of the Secretaries of Trade and Industry
Undersecretaries
The Philippine's Department of Trade and Industry has the following Undersecretaries which take charge of the department's line bureaus and attached agencies
Undersecretary for Industry and Investments which takes charge of Board of Investments; Export Processing Zone Authority; Bureau of Small and Medium Business Development; Bureau of Import Services; Iron and Steel Authority; Construction Industry Authority of the Philippines;
Undersecretary for Domestic Trade which takes charge of Bureau of Patents, Trademarks, and Technology Transfer; Bureau of Trade Regulation and Consumer Protection; Bureau of Domestic Trade Promotion; Bureau of Product Standards; Videogram Regulatory Board;
Undersecretary for International Trade which takes charge of Bureau of Export trade Promotion; Bureau of International Trade Relations; Philippine International Trading Corporation; Garments and Textile Export Board; International Coffee Organization-Certifying Agency; Foreign Trade Service Corps; Center for International Trade Expositions and Missions; Bonded Export Marketing Board; Philippine Shippers' Council; Philippine Trade Training Center; Product Development and Design Center of the Philippines;
Undersecretary for Regional Operations which takes charge of Office for Luzon Operations; Office for Visayas Operations; Office for Mindanao Operations. Regional operations are grouped into zonal operations for Luzon, Visayas and Mindanao.
Attached Agencies
The following are attached agencies of the Department of Trade and Industry:
Board of Investment
Center for International Trade Exposition and Missions
Intellectual Property Office
National Development Corporation
Optical Media Board
Philippine Economic Zone Authority
Philippine National Construction Corporation
Philippine Trade Training Center
Product Development and Design Center of the Philippines
Small Business Corporation
Attached agencies are actually sub-agencies of any national departments of the national government organization in the Philippines in which creation is established by special laws and its operation is independent of its mother unit. The mother unit only serves as supervisory on these special attached agencies.
http://stat.wto.org/CountryProfiles/PH_e.htm
September 2012
Philippines
BASIC INDICATORS
Population (thousands, 2011)
94 852
Rank in world trade, 2011
Exports
Imports
GDP (million current US$, 2011)
224 754
Merchandise
56
46
GDP (million current PPP US$, 2011)
392 679
excluding intra-EU trade
39
29
Current account balance (million US$, 2011)
7 078
Commercial services
42
54
Trade per capita (US$, 2009-2011)
1 352
excluding intra-EU trade
25
37
Trade to GDP ratio (2009-2011)
63.8
Annual percentage change
2011
2005-2011
2010
2011
Real GDP (2005=100)
132
5
8
4
Exports of goods and services (volume, 2005=100)
136
5
21
4
Imports of goods and services (volume, 2005=100)
137
5
23
14
TRADE POLICY
WTO accession
1 January 1995
Contribution to WTO budget (%, 2012)
0.372
Trade Policy Review
20, 22 March 2012
Import duties collected
GPA accession
-
in total tax revenue
...
Tariffs and duty free imports
to total imports
...
Tariff binding coverage (%)
67.0
Number of notifications to WTO and measures in force
MFN tariffs
Final bound
Applied 2011
Outstanding notifications in WTO Central Registry
30
Simple average of import duties
Goods RTAs - services EIAs notified to WTO
9 - 4
All goods
25.7
6.1
Anti-dumping (30 June 2011)
1
Agricultural goods (AOA)
35.1
8.7
Countervailing duties (30 June 2011)
...
Non-agricultural goods
23.4
5.7
Safeguards (26 October 2011)
5
Non ad-valorem duties (% total tariff lines)
0.1
0.0
Number of disputes (complainant - defendant)
MFN duty free imports (%, 2010)
Requests for consultation
5 - 6
in agricultural goods (AOA)
6.3
Original panel / Appellate Body (AB) reports
2 - 2
in non-agricultural goods
33.9
Compliance panel / AB reports (Article 21.5 DSU)
0 - 0
Services sectors with GATS commitments
51
Arbitration awards (Article 22.6 DSU)
0 - 0
MERCHANDISE TRADE
Value
Annual percentage change
2011
2005-2011
2010
2011
Merchandise exports, f.o.b. (million US$)
48 305
3
34
-6
Merchandise imports, c.i.f. (million US$)
63 693
4
27
9
2011
2011
Share in world total exports
0.26
Share in world total imports
0.35
Breakdown in economy's total exports
Breakdown in economy's total imports
By main commodity group (ITS)
By main commodity group (ITS)
Agricultural products
11.2
Agricultural products
11.0
Fuels and mining products
8.5
Fuels and mining products
23.3
Manufactures
79.8
Manufactures
65.7
By main destination
By main origin
1. Japan
18.5
1. Japan
11.0
2. United States
14.8
2. United States
10.9
3. China
12.7
3. China
10.2
4. European Union (27)
12.4
4. Singapore
8.1
5. Singapore
8.9
5. European Union (27)
7.4
COMMERCIAL SERVICES TRADE
Value
Annual percentage change
2011
2005-2011
2010
2011
Commercial services exports (million US$)
15 450
23
28
10
Commercial services imports (million US$)
11 615
12
28
4
2011
2011
Share in world total exports
0.37
Share in world total imports
0.29
Breakdown in economy's total exports
Breakdown in economy's total imports
By principal services item
By principal services item
Transportation
8.6
Transportation
41.8
Travel
20.4
Travel
31.4
Other commercial services
71.0
Other commercial services
26.8
INDUSTRIAL PROPERTY
Patent grants by patent office, 2010
Trademark registrations by office, 2010
Residents
Non-residents
Total
Direct residents
Direct non-residents
Madrid
Total
8
346
354
5 655
6 542
...
12 197
CHAPTER-4
DIFFERENT ECONOMIC SECTORS IN PHILIPPINES
DIFFERENT ECONOMIC SECTORS IN PHILIPPINES
Philippines - Economic sectors
In the Philippines, the 3 largest economic sectors are industry, service, and agriculture, in terms of contribution to GDP. In past years, the service sector has exhibited continuous growth. Agriculture, although still substantial, continues to decline. Estimates from 1997 reveal that agriculture contributed 20 percent to GDP, industry contributed 32 percent, and services dominated the economy with 48 percent of GDP In 1999 the rate of growth of the GDP stood at 3.2 percent. Economists blamed the sluggish growth on the lackluster performance of the industry sector, which grew by 0.5 percent. With the end of the dry spell brought about by El Niño weather conditions, the agriculture sector's performance rebounded and grew 6.6 percent, the highest rate in decades. Services grew by 3.9 percent that year because of the strong performance in retail. Maximum economic growth for 1999 and 2000 was slowed by successive political crises in the Estrada administration that caused foreign and international lending agencies to lose confidence. In 2000 GDP posted a 3.9 percent positive growth rate, with industry growing 4 times faster than it did in 1999. Services continued its strong performance, with a 4.4 percent increase over its 1999 figures.
Philippines has an advanced developed economy, with a GDP(PPP) of US$188.719 billion in 2010. It is currently the 32nd largest economy in the world. As a newly industrialized economy, the Philippines economy still has a large agriculture, but is swiftly dominated by manufacturing and services. Philippines is also rich in mineral and natural resources. It is considered one of the largest mining countries, with an estimated $1 trillion in mineral wealth. Philippines' rich mineral deposits includes metals like gold, nickel, copper and chromite and non-metals like asbestos, asphalt, sulfur and marble. However, the mining industry is facing a decline due to low metal prices, high production costs and change in mining laws. Philippines' Industry Sectors Philippines' agriculture contributes 13.9 percent of the country's total GDP in 2010. The country also tops the exports of abaca, bananas, carrageenan, copra (and other coconut products) and pineapples in the region. Philippines is also one of the the world's largest exporter of rice, which make up 2.8 percent of global rice production. Currently, Philippines is the host of the International Rice Research Institute, whose aim is to improve the well-being of poor rice farmers, the consumers, as well as the environment. Over the years, the agriculture in Philippines is facing a decline in productivity. Although the industry employs about 33 percent of the total workforce, it contributes less than a fifth of the nation's GDP. Reasons cited for the decline includes inadequate infrastructure and long seasons of droughts.
In 2010, industry was responsible for 31.3 percent of Philippines' GDP. Major industries include automotive, electronics, textiles, and food processing. Industry also employs 15 percent of the total workforce.
Philippines is the home to many major car manufacturers, such as Mercedes-Benz, BMW, Volvo, Ford, Toyota, Mitsubishi and Nissan, with Toyota the biggest seller of vehicles in the country. The automotive market in Philippines saw a 14-year decline in sales until 2010, when demand rises and set a new record high of 162,000 cars sold that year.
Electronics also played a huge role in Philippines industry. Major electronics manufactures like Intel and Texas Instruments have established their operations in the country for over two decades. Electronics in Philippines produce 10 percent of the world's supply of semiconductor manufacturing services and 50 percent of the world's production of HD TVs.
Philippines is also a leading export market for textiles, along with the US, Japan, Great Britain, Germany and Canada. Textiles exports contributes 4.93 percent of the country's total exports volume. Philippines' availability to textile resources such as natural fiber and natural dye, combined with a skilled and creative labour force allows the country to stay competitive in the world's textile market.
Services in Philippines contributes 54.8 percent of the country's total GDP, and is estimated to grow further as part of its economic development plan. In 2010, it employs 52 percent of the total workforce. Business process outsourcing(BPO) is the biggest driving factor behind Philippines' growing services.
As of 2010, Philippines has overtaken India as the world leader in business support functions, according to a IBM Global Location Trends Annual Report. The country's BPO market makes up 15 percent of the world's outsourcing market. BPO has contributed US$6 billion in revenues for the Philippines economy in 2008, US$7.2 billion in 2009, and US$9 billion in 2010. Currently, there are about 525,000 workers in the BPO market.
CHAPTER-5
OVERVIEW OF BUSINESS & TRADE AT INTERNATIONAL LEVEL
OVERVIEW OF BUSINESS & TRADE AT INTERNATIONAL LEVEL
DATA ON TRADE AND COMPETITIVENESS
Current account balance
US$ 2.1 billion (2010 estimate)(After 2008)
Current account balance by percentage of GDP
0.9% of GDP (2010 estimate)(2009)
Exports as percent of GDP
(Exports of goods and services)
34.8% (2010)
(Data released on April 2012)
Shares in world total merchandising export
0.34%(2007)
(Data were released in Nov 2011 and refer to 2010)
Shares in world total commercial services export
0.36%(2007)
(Data were released in Nov 2011 and refer to 2010)
Total exports
US$50.72 billion f.o.b. (2010 estimate)
Export commodities
semiconductors and electronic products, transport equipment, garments, copper products, petroleum products, coconut oil, fruits
Total imports
US$58 billion f.o.b. (2008 estimate)
Import commodities
electronic products, mineral fuels, machinery and transport equipment, iron and steel, textile fabrics, grains, chemicals, plastic
Exports - major partners
US 17%, Japan 14.5%, Hong Kong 11.5%, China 11.4%, Netherlands 8.2%, Singapore 6.2%, Malaysia 5%, Germany 4.3% (2007)
Imports - major partners
US 14.1%, Japan 12.3%, Singapore 11.2%, Taiwan 7.3%, China 7.2%, Saudi Arabia 6.4%, South Korea 5.9%, Malaysia 4.1%, Thailand 4.1% (2007)
FDI inflows
2008
2009
2010
US$1,544 million
US$1,963 million(2009)
US$1,713 million(2009)
FDI outflows
2008
2009
2010
US$259 million
US$359 million
US$487 million
Value of cross-border M&A, by country of purchaser
2008
2009
2010
2011
US$-174 million
US$-7 million(2009)
US$25 million(2009)
US$30 million
Cross-border M&A deals worth over $3 billion completed in 2008
(Acquiring company, Acquired company, Country of the acquired company, Value of the deal)
N/A
(for a monthly update on M&A click here )
Cross-border M&A deals worth over $3 billion completed in 2010
(Acquiring company, Acquired company, Country of the acquired company, Value of the deal)
N/A(2008 estimate)
(for a monthly update on M&A click here )
Best countries for doing business
World Bank/IFC Doing Business Project
(Economies are ranked on their ease of doing business, from 1 - 183. A high ranking means the regulatory environment is more conducive to the starting and operation of a local firm.)
Overall ranking: 148 out of 183 countries(2009) (2010)
Subcategories:
Starting a business: 156 out of 183 countries(2009)
Registering property: 102 out of 183 countries
Paying Taxes: 124 out of 183 countries
Getting credit: 128 out of 183 countries
Protecting investors: 132 out of 183 countries
Trading across border: 61 out of 183 countries
Enforcing Contracts: 118 out of 183 countries
(2010)
Global competitiveness ranking
(ranking by country on a basis of 142, the first is the best)
75
(2011/2012)
Index of Economic Freedom
WSJ and Heritage Foundation
Ranking: 115 Score: 56.2 (Mostly Unfree) (2009)
(100=totally free 0=totally repressed )
Business outline for the Philippines
Main Industry Sectors
The agricultural sector employs about 40% of the labor force but contributes to less than 15% of the GDP. The Philippines is one of the world's main producers of rice and coconut. However, the agricultural sector suffers from low productivity, weak economies of scale and inadequate infrastructures. Fishing contributes to 3% of the GDP. The Philippines is one of the richest countries of the world in terms of minerals with an unexploited mineral wealth estimated at more than USD 840 billion. The Philippines reserves of copper, gold and zinc are among the largest of the world.
The manufacturing sector contributes to around 30% of the GDP. Industrial food processing is one of the Philippines' main manufacturing activities. The big industries are dominated by the production of cement, glass, chemicals products and fertilizers, iron, steel, and refined oil products. The tertiary sector, which represents more than 50% of the GDP, has developed substantially especially in the fields of telecommunications, calling centers, and finance.
Economic Overview
The Philippines' economy has strengthened in the recent years, a fact that protected it from the direct impacts of the global financial crisis and the recession, but without sparing it totally. After having attained in 2009 its lowest level since the Asian crisis (1.1%), the growth of the Philippines' GDP has revived in 2010, increasing to 7% according to the estimations. On the track of the dynamic revival that the country has experienced, supported by the augmentation of exports in the manufacturing sector, the Philippines' economy has also profited, in a particular sense, from the presidential elections.
The plan of the "economic resilience" launched at the beginning of 2009, gives priority to the "post-crisis" management through a budgetary deficit control in order to stimulate the economy and compensate the effects of the crisis. The objective at mid-term is to bring the budget deficit to 2% of the GDP from now until 2013. The new president, Benigno Aquino, has presented on his agenda 16 points in the "Social Contract with the Filipino People", they emphasize the need to insure a long-term growth and reduce poverty.
On a social level, the country faces several challenges: the population living under the poverty threshold has increased in these recent years (33% of the population), the crisis has aggravated the unemployment rate (8% of the active population), there is a significant demographic growth and the inequality in wealth distribution persists.
FDI in Figures
Foreign direct investment (FDI) had clearly decreased since 2008 due to the unfavorable international economic environment; however, it has started to rebound again in 2010. Considering the comparative advantages of the Philippines, such as: English speaking and well-skilled manpower, a strong cultural proximity to the United States, its geographical location in a dynamic area, the FDI flow in the Philippines is rather weak. This can be partially explained by the fact that the country is evolving into a service society, with a low capital strength, which means a need of minimal equipment. In addition, the government favours subcontracting agreements between foreign companies and local enterprises rather than FDI in the strict sense of the term. Lastly, corruption, instability, inadequate infrastructures and not enough juridical security discourages investment.
FDI Government Measures
Laws liberalizing business practices have opened up more fields to foreign investments and have provided foreign investors with the same incentives as ASEAN members, as well as simplified procedures.
Country Strong Points:
The country's main strong points are:
- A skilled English-speaking workforce;
- A large domestic market;
- Its membership to ASEAN;
- A favorable investment policy;
- A very advanced legal system;
- A strategic location at the Asian gateway; and
- Considerable natural wealth.
Country Weak Points
The country's weak points lie in its political instability, the bad quality of its infrastructures, judicial precariousness and lack of transparency.
Foreign Trade Overview
During these two last decades, the Philippines' economy, which was relatively closed, has evidently opened up, partly due to its ASEAN (Association of South-East Asian Nations) membership. Its three main export partners are the United States, Japan and China. The main export commodities are electronic and electrical equipment, nuclear reactors and boilers, vehicles and clothing. Its three main import partners are the United States, Japan and Singapore. The main import commodities are electronics and electrical equipment, mineral fuels and oil, nuclear reactors and boilers, iron, steel and vehicles. Traditionally, the Philippines has a deficit trade balance; however, under the effects of the global crisis, its trade balance deficit was reduced (and even transformed into a positive balance during a few months) due to the fact of a high fall on imports followed by a fast revival of exports.
Business response to free trade agreements in the Philippines
The Philippines is an outward-oriented Asian developing economy that is experimenting with FTAs as a trade policy instrument. The country has had 15 years of experience with AFTA and is participating in a burst of FTA activity, led by ASEAN and a bilateral FTA with Japan. Underlining a greater regional orientation in its trade pattern, the share of Philippine exports destined for ASEAN economies has increased significantly since the early 1990s. While this trend may be indicative of an "AFTA effect," little is known about patterns, determinants, and impediments to AFTA use in the Philippines and this study attempts to remedy this gap in the literature.
Firms in the Philippines use AFTA more than was expected based on previous studies and may start considering other FTAs as they explore new export markets. About 20% of the firms surveyed reported using or having used AFTA, with firms in the transport sector using AFTA the most. The high margins of preference accorded to transport products and the successful implementation of the AICO scheme are possible reasons for the higher utilization rate in transport relative to other sectors. As firms eye new export markets and business opportunities, other FTAs (e.g., the ASEAN-PRC FTA and JPEPA) are beginning to draw the interest of firms. Accordingly, the overall FTA utilization rate among sample firms seems set to double to 41% in the future. Firms in the food sector are boldly considering new and emerging markets and may increasingly turn to FTAs for support. AFTA users perceive net benefits from the regional agreement, in particular cheaper intermediate inputs due to preferential tariffs and increased export sales to regional markets. Econometric testing suggests that the probability of using AFTA at the firm level increases with firm age, domestic ownership, awareness of FTAs, and membership in the automotive industry.
While the use of FT
