The Philippines is a rapidly advancing economy that is classified as a newly industrialized country and one of the most dynamic in the Asia-Pacific region. It is a prominent member of the global community, with memberships in the United Nations, Association of Southeast Asian Nations, Asia-Pacific Economic Cooperation, East Asia Summit, and the World Trade Organization. According to the International Monetary Fund, the Philippine economy is the 36th largest in the world in terms of nominal GDP and the 15th largest in Asia, as of 2023.
The Philippine economy is shifting from an agricultural-based economy to a more service and manufacturing-oriented one. The country has undergone significant economic growth and transformation in recent years, with an average annual growth rate of approximately 6% since 2010, making it one of the fastest-growing economies in the region. Its GDP, estimated at $1.47 trillion by purchasing power parity as of 2021, is the 18th largest in the world.
The Philippines’ primary exports include a variety of products, such as semiconductors, electronic goods, transport equipment, garments, chemicals, copper, nickel, abaca, coconut oil, and fruits. The country has strong trading relationships with major partners, including Japan, China, the United States, Singapore, South Korea, the Netherlands, Hong Kong, Germany, Taiwan, and Thailand. The Philippines is one of the Tiger Cub Economies, which also includes Indonesia, Malaysia, Vietnam, and Thailand. However, there are still significant issues that need to be addressed, such as reducing income and growth inequalities among different regions and socioeconomic classes, fighting corruption, and investing in infrastructure to ensure future growth. The Asian Development Bank (ADB) is located in the Ortigas Center in the city of Mandaluyong, Metro Manila.
According to projections, the Philippine economy is expected to become the fourth largest in Asia and the 19th largest in the world by 2050. Additionally, it is predicted that by 2035, the Filipino economy will be the 22nd largest in the world.Tweet
Tourism plays a crucial role in the Philippine economy, contributing 5.2 percent to the country’s GDP in 2021. However, this figure is lower than the 12.7 percent recorded in 2019 before the COVID-19 lockdowns. The Philippines is known for its rich biodiversity, which is its primary tourist attraction. Popular tourist destinations in the country are Boracay, Palawan, and Siargao. Despite its potential, the Philippines has lagged behind some of its Southeast Asian neighbors in the tourism industry due to political and social issues.
As of 2019, the tourism sector has employed 5.7 million Filipinos. In 2015, foreign tourists brought in P227.62 billion pesos (US$4.15 billion) to the Philippine government, with almost 25 percent coming from Boracay. In the same year, the country attracted over 5 million foreign visitors through its tourism campaign of “It’s More Fun in the Philippines.” In 2019, foreign arrivals peaked at 8.2 million.