Philippines Economy

The Philippines is located in South East Asia and the Philippines economy has been industrialized in the recent times. In terms of the purchasing power parity it ranked 24th according to the World Bank. The sectors that are of key importance in the Philippines Economy are agriculture, industry and mining each of which can be detailed under the following heads; Agricultural sector contributes about 17.1% of the GDP, Industrial Sector contributes 18.1% in the GDP. “The Gross Domestic product (GDP) for 2004 was $84.2 billion. The per capita gross domestic product was $976. At constant 1985 prices and current prices in million PHP (Pesos).” (http://www.economywatch.com/world_economy/philippines/) The Philippines is a newly industrialized country in South-East Asia and it is progressing nicely because of its agricultural and industrial sectors.

The Philippines currently hosts the International Rice Research Institute (IRRI), which studies high yielding rice varieties. It has played a key role in the Green Revolution and was able to increase rice yields and rice production during the 1970s. “The agricultural sector sees the involvement of about two-thirds or more than 40% of Filipinos. Rice remains the most important agricultural product. In order to increase the economic growth of the country, the Filipinos rely on major products such as coconuts (copra and coconut oil), abaca (Manila hemp), tobacco, and sugar for export purposes. The island republic is, however, diversifying from agricultural and mineral product exports into higher value manufactured and luxury goods such as electronics, apparel and clothing accessories as well as computer-related products.” (http://www.marimari.com/cOnTENT/philippines/general_info/economy.html)

Predominantly agricultural, the Philippine economy has grown in the manufacturing sector since the 1960s. During the mid-90's, 46 percent of the work force was comprised of those in agriculture, fishing and forestry. These areas also contributed over 20 percent to the GDP. The service industry comprised almost 40 percent with manufacturing, construction and mining employing 15 percent. As a newly industrialized nation, the Philippines is still an economy with a large agricultural sector, however services are beginning to dominate. Much of the industrial sector is based around manufacturing electronics and other high-tech components, usually from American corporations. “Industrial production is centered on processing and assembly operations of the following: food, beverages, tobacco, rubber products, textiles, clothing and footwear, pharmaceuticals, paints, plywood and veneer, paper and paper products, small appliances,