Economic trends
The Philippine economy has strengthened in recent years, a fact which protected it from the direct impacts of the global financial crisis, though without completely sparing it. After the 2008 decrease, growth increased by 1.5% in the second quater of 2009 and recession was thus able to be avoided.
This modest growth was increased by the support of the construction, mining, transport and services sectors, as well as by household consumptions and public spending. The constant money transfers from Filipinos working abroad ensures the maintenance of a surplus current account. The "economic resillience" plan, launched at the beginning of 2009, prioritizes post-crisis management through a controlled budget deficit in order to stimulate the economy and compensate for the effects of the crisis.
At the social level, the country is faced with a number of challenges: the increase in the amount of the population living under the poverty threshold in these recent years (33% in the population), the significant demographic growth, the high rate of unemployment and the contiunously persistent wealth distribution inequality.
Main branches of industry
Agriculture employs approximately 40% of the labor force but contributes 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 3% to the GDP. The Philippines is one of the most mineral-rich countries in the world with an unexploited mineral wealth estimated at more than USD 840 billion. The Philippines' copper, gold and zinc reserves in are among the world's largest.
The manufacturing sector contributes around 30% of the GDP. Food processing is one of the Philippines' main activities. The bigger 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 telecommunications, call centers, and finance fields.
International trade
During these two last decades, the Philippine economy, which was relatively closed, has opened up noticeably partly due to its ASEAN (Association of South-East Asian Nations) membership. Its three main export partners are the United States, Japan and China. Main export commodities are electronic and electrical equipment, nuclear reactors and boilers, vehicles, clothing and clothes. Its three main import partners are the United States, Japan and Singapore. Main import commodities are electronic and electric equipment, mineral fuels and oil, nuclear reactors and boilers, iron, steel and vehicles. In 2007 and in 2008, the Philippines showed a trade balance deficit. This situation reversed itself because of the global economic crisis, the country is now showing a surplus. Even though exports have reduced, imports have declined strongly.
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