Describing the economy of a country is certainly a hard task. There are so many areas to cover and analyze. In this article, we will give an overview on the economy of the Philippines. Philippines is ranked 33rd on the World Bank GDP Ranking for 2019. This Southeast Asian country is the rising tiger of Asia in terms of economic growth. Now let us proceed to some pointers that shows the economic situation of the country:
Present Condition (In the midst of a pandemic)
The Philippine’ economic growth was heavily hit and affected by the Covid-19 therefore impeding its growth. Due to the quarantine implemented, almost 95% of businesses were closed and strict rules and regulations limited the movement of the economy into its lowest levels ever. Many businesses permanently closed due to bankruptcy. It resulted in an economic decline.
Economic growth is expected to rebound gradually in the next two years assuming that the pandemic does not get out of control and the containment procedures both locally and internationally is successful. It is predicted that the momentum will shift into a better course which is a substantial economic resurgence for the country.
Rich and Poor Gap
In the latest Family Income and Expenditure Survey by the Philippine Statistics Authority shows that majority of Filipinos belong to the low-income class at 58.4%, while the middle class comprises around 40% of the population. Only 1.4% fall in the high-income class. According to the Credit Suisse in its annual global health report, the Philippines ranked 9th in the world in terms of income inequality.
Exports and Imports
The country’s primary exports were electronic products, machinery and transport equipment, bananas, gold, copper, other minerals, and metal components. All exports done in 2019 amounted to almost 71 billion US dollars. On the other hand, the primary imports were electrical and machineries equipment, oil, vehicles, steel, plastic, cereal, aircraft, and medical apparatus. Total amount of imports for 2019 costs about 112 billion US dollars.
The exchange of Philippine Peso (PHP) and the US Dollars (USD) is one of the reasons why many OFWs (Overseas Filipino Workers) worked in countries that pays them in dollars. As of this writing, 1 USD is equivalent to 47.76 PHP. Did you know that with this amount you can already buy 2-3 meals in the Philippines?
With these information, we can conclude that the country’s economy is far from being one of the best economies in the world. But it shows that it has some potential but also some dependency on foreign influence such as currencies.