Economy of the Philippines

Economy of the Philippines

Metro Manila, the economic center of the Philippines
Currency	Philippine peso (Filipino: piso; sign: ₱; code: PHP)
Fiscal year	Calendar year
Trade organizations	ADB, AIIB, AFTA, APEC, ASEAN, EAS, G-24, RCEP, WTO and others
Country group	Developing/Emerging[1] Lower-middle income economy[2] Newly industrialized country
Statistics
Population	109,035,343 (12th) (2020 census)[3][4] 114,163,719 (2024 estimate)[5]
GDP	$471.516 billion (nominal; 2024 est.)[6] $1.392 trillion (PPP; 2024 est.)[6]
GDP rank	32nd (nominal; 2024 est.) 28th (PPP; 2024 est.)
GDP growth	5.6% (2023)[1] 6.2% (2024f)[1] 6.2% (2025f)[1]
GDP per capita	$4,130 (nominal; 2024 est.)[6] $12,191 (PPP; 2024 est.)[6]
GDP per capita rank	124th (nominal; 2024 est.) 113th (PPP; 2024 est.)
GDP by sector	Agriculture: 8.6% Industry: 29.1% Services: 62.3% (2023)[7]
GDP by component	Household consumption 73.1% Government consumption 14.2% Gross capital formation 23.1% Exports of goods and services 27.4% Less: Imports of goods and services 39.2% Other source 10.6% (2023)[7]
Inflation (CPI)	1.9% (September 2024)[8]
Population below poverty line	15.5% (2023)[9] 18.0% on less than $3.65/day (2021)[10]
Gini coefficient	41.2 medium (2021)[11]
Human Development Index	0.710 high maximum (2022, 113th)[12] 0.590 medium real (2022, IHDI)[12]
Corruption Perceptions Index	34 out of 100 points (2023, 115th rank)
Labor force	50.28 million 66.0% participation rate (June 2024 est.)[13]
Labor force by occupation	Agriculture: 21.1% Industry: 20.2% Services: 58.7% (June 2024 est.)[13]
Unemployment	3.1% 1.62 million unemployed (June 2024 est.)[13]
Average gross salary	₱18,423 / US$338 monthly (2022)[14]
Gross savings	₱6.60 trillion (2023)[15]
Main industries	Electronics assembly aerospace/parts agribusiness automotive/parts IT and business process outsourcing food processing furnitures pharmaceuticals petrochemicals metal casting and mining shipbuilding textile tourism[16][17]
External
Exports	$115.26 billion (2022)[18][7][note 1]
Export goods	Electronic products 56.9% Agricultural products 8.7% Manufactured goods 5.4% Mineral products 4.2% Ignition wirings 3.6% Machinery and Transport equipment 3.3% Other 17.9% (2023)[19][20]
Main export partners	United States 15.7%  ASEAN 15.2%  China 14.8%  Japan 14.2%  Hong Kong 12.0%  European Union 11.4% Other 16.7% (2023)[20]
Imports	$159.29 billion (2022)[18][7][note 1]
Import goods	Electronic products 21.1% Mineral fuels 15.9% Agricultural products 14.2% Transport equipment 9.9% Iron and steel 4.5% Industrial machinery 4.4% Other 30.0% (2023)[19][20]
Main import partners	ASEAN 29.9%  China 23.3%  Japan 8.2%  South Korea 6.7%  United States 6.7%  European Union 6.2% Other 19.0% (2023)[20]
FDI stock	$118.985 billion (Inward, 2023)[21] $68.272 billion (Outward, 2023)[21]
Current account	-$11.20 billion -2.6% of GDP (2023)[22][23]
Gross external debt	$125.394 billion 28.7% of GDP (2023p)[7]
Public finances
Government debt	₱14.616 trillion ($263.03 billion) 60.2% of GDP (2023)[7][24]
Budget balance	-₱1.512 trillion (-$27.21 billion) −6.2% of GDP (2023)[7]
Revenues	₱3.824 trillion ($68.81 billion) 15.7% of GDP (2023)[7]
Expenses	₱5.336 trillion ($99.63 billion) 22.0% of GDP (2023)[7]
Economic aid	recipient: $1.67 billion (2011)[25]
Credit rating	Japan Credit Rating Agency:[26] A− (Domestic/Foreign) A− (Bonds) Outlook: Stable Standard & Poor's:[27] BBB+ (Domestic/Foreign) BBB+ (T&C Assessment) Outlook: Stable Moody's:[28] Baa2 Outlook: Stable Fitch:[29] BBB (Domestic/Foreign) BBB+ (Country Ceiling) Outlook: Stable
Foreign reserves	$111.083 billion (October 2024)[22][30]
All values, unless otherwise stated, are in US dollars.

The economy of the Philippines is an emerging market, and considered as a newly industrialized country in the Asia-Pacific region.^[31] In 2024, the Philippine economy is estimated to be at ₱26.55 trillion ($471.5 billion), making it the world's 32nd largest by nominal GDP and 13th largest in Asia according to the International Monetary Fund.

The Philippine economy is transitioning from one based on agriculture to one based more on services and manufacturing. It has experienced significant economic growth and transformation in recent years. With an average annual growth rate of around 6 percent since 2010, the country has emerged as one of the fastest-growing economies in the world.^[32] The Philippines is a founding member of the United Nations, Association of Southeast Asian Nations, Asia-Pacific Economic Cooperation, East Asia Summit and the World Trade Organization.^[33] The Asian Development Bank (ADB) is headquartered in the Ortigas Center located in the city of Mandaluyong, Metro Manila.

The country's primary exports include semiconductors and electronic products, transport equipment, garments, chemical products, copper, nickel, abaca, coconut oil, and fruits. Its major trading partners include Japan, China, the United States, Singapore, South Korea, the Netherlands, Hong Kong, Germany, Taiwan, and Thailand.

In 2017, the Philippine economy was projected to become the 9th largest in Asia and 19th largest in the world by 2050.^[34] By 2035, the Filipino economy is predicted to be the 22nd largest in the world.^[35]

The Philippines has been named as one of the Tiger Cub Economies, alongside Indonesia, Malaysia, Vietnam, and Thailand. However, major problems remain, mainly related to alleviating the wide income and growth disparities between the country's different regions and socioeconomic classes, reducing corruption, and investing in the infrastructure necessary to ensure future growth.

In 2024, the World Economic Forum chief Børge Brende said that “there is a real opportunity for this country to become a $2-trillion economy.”^[36]

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