99900177
Filipino (official; based on Tagalog) and English (official); eight major dialects - Tagalog, Cebuano, Ilocano, Hiligaynon or Ilonggo, Bicol, Waray, Pampango, and Pangasinan
MANILA (capital) 12.946 million; Davao 1.63 million; Cebu City 951,000; Zamboanga 936,000 (2015)
- Conventional long form
- Republic of the Philippines
- Conventional short form
- Philippines
- Local long form
- Republika ng Pilipinas
- Local short form
- Pilipinas
presidential republic
- Name
- Manila
- Geographic coordinates
- 14 36 N, 120 58 E
- Time difference
- UTC+8 (13 hours ahead of Washington, DC, during Standard Time)
accepts compulsory ICJ jurisdiction with reservations; accepts ICCt jurisdiction
The economy has been relatively resilient to global economic shocks due to less exposure to troubled international securities, lower dependence on exports, relatively resilient domestic consumption, large remittances from about 10 million overseas Filipino workers and migrants, and a rapidly expanding outsourcing industry. During 2016, the current account balance narrowed to its lowest level since the 2008 global financial crisis, but nevertheless mustered a surplus for a 14th consecutive year. International reserves remain at comfortable levels and the banking system is stable.
- Inflation
- 1.767%
- External debt stocks
- US$ 77,725,096,000
- Total tax rate (% of commercial profits)
- 42.9%
- Real Interest Rate
- 3.918%
- Manufacturing, value added (% of GDP)
- 19.646%
- Current Account Balance
- US$ 600,675,839
- Labor Force, Total
- 45,504,070
- Employment in Agriculture
- 29.15%
- Employment in Industry
- 16.20%
- Employment in Services
- 54.65%
- Unemployment Rate
- 5.88%
- Imports of goods and services
- US$ 112,613,337,262
- Exports of goods and services
- US$ 85,267,069,625
- Total Merchandise Trade
- 46.77%
- FDI, net inflows
- US$ 7,933,059,815
- Commercial Service Exports
- US$ 31,339,797,356
rice, fish, livestock, poultry, bananas, coconut/copra, corn, sugarcane, mangoes, pineapple, cassava
semiconductors and electronics assembly, food and beverage manufacturing, construction, electric/gas/water supply, chemical products, radio/television/communications equipment and apparatus, petroleum and fuel, textile and garments, non-metallic minerals, basic metal industries, transport equipment
- Commodities
- semiconductors and electronic products, machinery and transport equipment, wood manufactures, chemicals, processed food and beverages, garments, coconut oil, copper concentrates, seafood, bananas/fruits
- Partners
- Japan 21.1%, US 15%, China 10.9%, Hong Kong 10.6%, Singapore 6.2%, Germany 4.5%, South Korea 4.3% (2015)
- Commodities
- electronic products, mineral fuels, machinery and transport equipment, iron and steel, textile fabrics, grains, chemicals, plastic
- Partners
- China 16.2%, US 10.8%, Japan 9.6%, Singapore 7%, South Korea 6.5%, Thailand 6.4%, Malaysia 4.8%, Indonesia 4.4% (2015)
- Country Risk Rating
- A4
- A somewhat shaky political and economic outlook and a relatively volatile business environment can affect corporate payment behavior. Corporate default probability is still acceptable on average.
- Business Climate Rating
- B
- The business environment is mediocre. The availability and the reliability of corporate financial information vary widely. Debt collection can sometimes be difficult. The institutional framework has a few troublesome weaknesses. Intercompany transactions run appreciable risks in the unstable, largely inefficient environments rated B.
- Economy reputed for its electronic industry (more than 40% of exports)
- Household consumption and external accounts are benefiting from expatriate's workers remittances
- Thriving business process outsourcing (BPO) sector
- Low level of investment, particularly in infrastructure
- Governance shortcomings
- Inequalities and strong demographic growth are impacting economic performances
In 2017, the economy is expected to remain vigorous with household consumption, which should continue to be the main driver (70% of GDP). Consumption is expected to continue benefiting from substantial expatriate remittances and rapid credit growth. Purchasing power should not be penalized by inflation, which stays at moderate level, though increasing, and is in line with Central bank target rate (2-4%). Investment is still on the right path, following the new government's plans to dedicate 5% of its federal budget allocation to infrastructure development through public/private partnerships (allocations to Ministry of Transport have increased more than three-fold since 2011). Transport, communication and storage will be dynamic sectors. In 2016, the agricultural sector had suffered from high temperatures caused by El Niño, which caused a loss of 4.5% of overall production only between January and May 2016. However, in 2017, weather should improve with El Niña.
The budget balance is likely to deteriorate in 2017, following increased spending for the reconstruction and development of infrastructures. However, public debt should continue to shrink. Furthermore, although government has encountered difficulties of budget execution and public expenditures were lower than projected in 2016, the latter is likely to bounce considering the federal budget for 2017 that is supposed to hinge on public investment.
Rodrigo Duterte, former mayor of Davao, was elected to the presidency on 9 May 2016 to succeed Benigno Aquino. He won a surprising victory against his opponent, Manuel Roxas, the outgoing president's favourite. The new president has initiated reconciliation with the Chinese authorities at the risk of distancing the country from its traditional ally, the United States, in order to ease tensions regarding conflict in the South China Sea. Cooperation with neighbouring countries in combatting terrorism and piracy is being intensified, and there is a move to develop an alliance with Indonesia and Malaysia.