Lavega, Myrrile Dane C. BSMA-4 MW 7:30-9:00 Dec. 12, 2017

Lavega, Myrrile Dane C. BSMA-4 MW 7:30-9:00 Dec.
12, 2017
PHILIPPINE GDP FROM 1961-2017
Source: Philippines GDP Graph. Retrieve from https://www.google.com.ph/publicdata/explore.

Source: Philippines GDP from 2012-2017. Retrieve from https://www.statista.com
/statistics/578705/gross-domestic-product-gdp-growth-rate-in-philippines/.
ANALYSIS:
1970s-1980s
Considering that this was during the Declaration of the Martial Rule by our former President
Ferdinand Marcos, we can then say that these events have adversely affected our growing
economy.
The Philippines found itself in an economic crisis in early 1970, mainly as a consequence of the
excessive spending of the government funds by President Marcos in his reelection bid. The
government, unable to meet payments on its US$2.3 billion international debt, worked out a
US$27.5 million standby credit arrangement with the International Monetary Fund (IMF) that
involved renegotiating the country’s external debt and devaluing the Philippine currency to P6.40
to the United States dollar. Since the Philippine government became reluctant and incapable to
deal with its own economic difficulties, the government submitted to the external dictates of the
IMF.
In September 1972, martial law was declared by Marcos asserting that the country was faced with
revolutions from both the left and the right. He gathered around him a group of businessmen,
used presidential decrees and letters of instruction to provide them with monopoly positions within
the economy, and began channeling resources to himself and his associates, instituting what came
to be called “crony capitalism.” By the time Marcos fled the Philippines in February 1986,
monopolization and corruption had severely crippled the economy.
1980s-1990s
It was in this environment in August 1983 that President Marcos’s foremost critic, former Senator
Benigno Aquino, returned from exile and was assassinated. The country was thrown into an
economic and political crisis that resulted eventually, in February 1986, in the ending of Marcos’s
twenty-one-year rule and his flight from the Philippines. In the meantime, debt repayment had
stopped. Real GNP fell more than 11 percent before turning back up in 1986, and real GNP per
capita fell 17 percent from its high point in 1981. In 1990 per capita real GNP was still 7 percent
below the 1981 level.
Economic growth revived in 1986 under the new president, Corazon C. Aquino, reaching 6.7
percent in 1988. But in 1988 the economy once again began to encounter difficulties. The trade
deficit and the government budget deficit were of particular concern. In 1990 the economy
continued to experience difficulties, a situation exacerbated by several natural disasters, and
growth declined to 3 percent.
The 1988 GNP grew 6.7 percent, slightly more than the government plan target. Growth fell off to
5.7 percent in 1989, then plummeted in 1990 to just over 3 percent. Many factors contributed to
the 1990 decline. The country was subjected to a prolonged drought, which resulted in the
increased need to import rice. In July a major earthquake hit Northern Luzon, causing extensive
destruction, and in November a typhoon did considerable damage in the Visayas.
1990s-2000s
President Fidel Ramos (1992-1998) was given high marks for handling the economy. By breaking
apart monopolies, liberalizing foreign investment laws and privatizing business and industries by
controlled powerful families, Ramos was crediting with transforming the Philippines from a country
with a history of poverty, corruption, rebellion, foreign ineptness and tax evasion into an economic
powerhouse that was not yet an Asian tiger but was sometimes referred to as Asian tiger cub.
Oliver Teves of Associated Press wrote: “For a brief period of the 1990s, the Philippines under the
presidency of Fidel Ramos registered high growth rates and was touted as the next Asian "tiger"
economy. The Philippine economy showed some improvement in early 1992, spurred by increases
in agricultural production and in consumer and government spending. The growth rate during the
Ramos years was a robust 5 percent a year and inflation was in the single digits, down from 25
percent in 1990. Under his leadership, fiber optic lines were installed, property values soared, five
star hotels and condominiums were built, the stock market showed big gains, overseas workers
began returning home and the former American military bases at Subic and Clark became thriving
trade and industrial centers and foreign investment increased.
During the Asian Economic Crisis in 1997-98, the Philippines the stock market declined by 32
percent and the currency against the dollar had depreciated by as much as 48 percent and later
level off at 30 percent at end of December 1997. Because many of its exports went to Europe it
was not hurt that badly by a lack of demand from crisis-hit Asia. The level of bad loans never got
that high. Money sent home by Filipino workers abroad helped stabilize the currency. Most
currency speculators were Filipinos.
2000s to Present
Growth in 2003 and 2004 was around 5 percent due in art to rising demand for Philippines
electronic exports. Growth occurred despite continued hikes in oil and consumer prices on top of
typhoons and floods. Growth was 4.7 percent in 2005. That year exports amounted to 40 percent
of GDP. Many of the export items were electronics. Two-thirds of Philippine imports are used to
build exported computer arts, disks and other electronic products made by local units of companies
such as Texas Inpstruments Inc. and Toshiba Corp.
On September 15, 2008 the global investment bank Lehman Brothers filed for bankruptcy
protection, sending shock waves across the international financial system. This was soon followed
by other bankruptcies, bailouts and takeovers of financial institutions in the US and Europe.
Subsequently many economies—Germany, Japan, Singapore and Hong Kong among others—were
declared to be in recession. The Philippines was affected by global economic crisis in 2008 and
2009 as was nearly everywhere. The currency is poised for a 13.4 percent loss this year, the most
since shortly before former President Joseph Estrada was ousted in a revolt. The Philippine Stock
Exchange Index slumped 48 percent this year to 1,872.85, the biggest annual drop since
Bloomberg started tracking the data in 1988. Philippine economy was largely brought about by a
surge in inflation triggered by the sharp rise in food and fuel prices and to a lesser extent the US
recession. Inflation jumped to 9.3 percent in 2008 after averaging only 2.8 percent in 2007.
The Philippine economy expanded by 7.2 percent in 2013, 6.8 percent in 2012, 3.7 percent in
2011 and 7.6 percent in 2010. In 2012, gross domestic product surpassed the government’s
forecast for growth of 5 percent to 6 percent. The Philippines had the second-highest growth rate
in the world 2012, after China.
Sources: Retrieve from:
http://factsanddetails.com/southeast-asia/Philippines/sub5_6g/entry-3916.html

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Lavega, Myrrile Dane C. BSMA-4 MW 7:30-9:00 Dec.

PHILIPPINE GDP FROM 1961-2017

Source: Philippines GDP Graph. Retrieve from https://www.google.com.ph/publicdata/explore.

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