Philippine Economic System

ECONOMIC SYSTEM OF THE
PHILIPPINES
GROUP 4 APPLIED
ECONOMICS
PRESENTATION
BUGTONG
Hinila ko ang tadyang lumapad
ang tiyan
Bulaklak muna ang dapat gawin
bago mo ito kainin
Dala mo dala ka,
dala ka ng iyong dala
Hindi pari, hindi hari,
nagdadamit ng sari-sari
Maliit na bahay,
puno ng mga patay
BACKGROUND
Philippines, island country of Southeast Asia in the
western Pacific Ocean. It is an archipelago
consisting of some 7,100 islands and islets lying
about 500 miles (800 km) off the coast of Vietnam.
Manila is the capital, but nearby Quezon City is the
country’s most-populous city.
BRIEF HISTORY
In the Early Philippines The Philippines in the 19th Century
The first people in the Philippines were hunter-gatherers. In 1872 there was a rebellion in Cavite but it was quickly
However between 3,000 BC and 2,000 BC people learned to crushed. However nationalist feeling continued to grow
farm. They grew rice and domesticated animals. Then in 1521 helped by a writer named Jose Rizal (1861-1896). Jose Rizal
Ferdinand Magellan sailed across the Pacific. He landed in was accused of supporting the revolution, although he did not
the Philippines and claimed them for Spain. The Spaniards
and he was executed on 30 December 1896. Yet his execution
did not gain a foothold in the Philippines until 1565 when
merely inflamed Filipino opinion and the revolution grew. On
Miguel Lopez de Legazpi led an expedition, which built a fort
in Cebu. The Spanish colony in the Philippines brought 30 April 1898 the Americans defeated the Spanish fleet in
prosperity - for the upper class anyway! Manila Bay. Meanwhile Filipino revolutionaries had
The years passed uneventfully in the Philippines until in 1762 surrounded Manila. Their leader, Emilio Aguinaldo declared
the British captured Manila. They held it for two years but the Philippines independent on 12 June. The Filipino-
they handed it back in 1764 under the terms of the Treaty of American War lasted until 1902 when Aguinaldo was captured.
Paris, signed in 1763.
BRIEF HISTORY
The Philippines in the 20th Century The Philippines in the 21st Century
American rule in the Philippines was paternalistic. Manuel Quezon became

Today the Philippines is still not fully
president. On December 1941 Japanese troops invaded the Philippines.
The Philippines became independent on 4 July 1946. Manuel Roxas was developed but things are changing. Since
the first president of the newly independent nation. Ferdinand Marcos was 2010 the Philippine economy has grown
elected president in 1965. On 21 September 1972 he declared martial law. at about 6% a year. Today there is reason
When Benigno Aquino returned from exile on 21 August 1983 he was shot.
to be optimistic for the future. Today the
Aquino became a martyr and Filipinos were enraged by his murder. In
population of the Philippines is 103
February 1986 Marcos called an election. The opposition united behind
Cory Aquino the widow of Benigno. In 1992 Fidel Ramos became president. million.
He improved the infrastructure in the Philippines. Meanwhile, in 1998
Joseph Estrada became president and was accused of corruption and he
was impeached in November 2000. Vice-president Gloria Macapagal-Arroyo
replaced him. She was re-elected in 2004.
GEOGRAPHIC
DESCRIPTION
The Philippine archipelago is made up of 7,107 islands;
favorably located in relation to many of Southeast Asia's
main water bodies: the South China Sea, Philippine Sea,
Sulu Sea, Celebes Sea, and Luzon Strait. Only about 7%
of the islands are larger than one square mile, and only
one-third have names. The largest are Luzon in the north,
Mindanao in the south and Visayas. The islands are of
volcanic origin, with the larger ones crossed by mountain
ranges. The highest peak is Mount Apo on Mindanao.
DEMOGRAPHIC
DESCRIPTION
Philippines contains a diverse range of ethnic groups. The
latest data available comes from the 2000 census, which
reported the following breakdown: Tagalog, 28.1%
Cebuano, 13.1% Ilocano, 9% Bisaya, 7.6% Hiligaynon,
7.5% Bicol, 6% Waray, 3.4% other, 25.3%. 108,779,373
The population of the Philippines has been steadily
growing for many years. It is the 13th most populated
country in the world.
CULTURE & TRADITION
Social Beliefs and Religion, Music, Dance and Literature Arts Cuisine and Sports
Customs Festivals, and Clothing
Holidays
The social beliefs and 80.58% are Roman The traditional folk songs Ancient Filipino literature Rice is the staple meal in the
customs practiced in the Catholic Church and are inspired by the was primarily made up of country and is usually
Philippines are primarily about 11% being other indigenous customs and legends and folklore prepared through steaming
influenced by the religion Christian denominations. beliefs. The music in the which were the main and is served together with
and demographics of the Islam is the second urban regions of the forms of literature before other foods. The abundance
region where they are largest religion with Philippines is known as the Spanish colonization of fish in the country makes
practiced. The traditional about 5.6%. The cultural original Pinoy music. of the country. The seafood another common
customs of the diversity in the Philippines ranges from earliest form of art is food item in most households
indigenous Filipinos are Philippines is showcased traditional indigenous- traced back to 5000 BC Other popular food items in
based on the beliefs of in fiestas. Some public inspired dances to through pottery. Ancient the Philippines include
the Austronesian holidays observed in the modern “western- Filipinos were also gifted lechon, mechado and
inhabitants of the Philippines include New inspired” dances. The tattoo artists who afritada. The national sport in
Philippines. Year’s Day, the Holy Maria Clara is a decorated their bodies in the country is Arnis, a type of
Week , Independence traditional dress worn by multi-colored martial arts. Boxing is one of
Day, Christmas Day and Filipino women. Another pigmentation with the most popular sports in the
Rizal Day traditional garment of the environment-inspired Philippines. Another popular
Philippines is the Barong designs. sport is basketball
Tagalog normally worn
by men during special
occasions.
MAIN PRODUCTS & SERVICES
Products Services
• Electrical machinery, equipment: US$32.9 billion

(48.7% of total exports) • Services that facilitate exchange
• Machinery including computers: $9.6 billion (14.3%)
• Services that change the condition of a good or
• Optical, technical, medical apparatus: $2.2 billion
(3.3%) product
• Fruits, nuts: $2.1 billion (3.1%) • Services that change the physical or mental
• Gems, precious metals: $1.5 billion (2.2%) condition of people
• Copper: $1.4 billion (2.1%)
• Ores, slag, ash: $1.2 billion (1.8%)
• Ships, boats: $1.2 billion (1.8%)
• Animal/vegetable fats, oils, waxes: $1.2 billion (1.7%)
• Mineral fuels including oil: $1.1 billion (1.7%)
MALAYSIA EXPORT
PHILIPPINES EXPORT
MALAYSIA IMPORT
PHILIPPINES IMPORT
Strengths
Large population that is Diverse geographic and Thriving Business

young (50% is under 25), sectoral origin of Process Outsourcing
qualified and with good remittances from (BPO) sector
command of English expatriate workers (10%
of GDP)
Weaknesses
Low rates of investment: Governance High levels of income

inadequate and outdated shortcomings: inequality
infrastructure. bureaucracy and
corruption.
Problematic security Strict bank secrecy and

situation in the South with casinos facilitate money
Muslim groups laundering
GDP AND GNP (2018)
Gross Domestic Product Gross National Product
Gross Domestic Product of Philippines grew 6.2% in 2018 compared to Gross National Product in Philippines increased to 2,926,854.11 PHP
last year. This rate is 5 -tenths of one percent less than the figure of Million in the third quarter of 2019 from 2,872,412.32 PHP Million in the
6.7% published in 2017. The GDP figure in 2018 was €280,119$330,910
second quarter of 2019. Gross National Product in Philippines
million, Philippines is number 40 in the ranking of GDP of the 196
countries that we publish. The absolute value of GDP in Philippines averaged 1,689,146.09 PHP Million from 1998 until 2019, reaching all-
rose €2,661$17,290 million with respect to 2017. time high of 2,926,854.11 PHP Million in the third quarter of 2019 and a
record low of 944,320 PHP Million in the second quarter of 1998.
The GDP per capita of Philippines in 2018 was €2,626$3,103, €18$114
less than in 2017, when it was €2,644$2,989. To view the evolution of
the GDP per capita, it is interesting to look back a few years and
compare these data with those of 2008 when the GDP per capita in
Philippines was €1,325$1,941. If we order the countries according to
their GDP per capita, Philippines is in 133th position, its population has
a low level of affluence compare to the 196 countries whose GDP we
publish.
HIGHLIGHTS
Even though no Philippine president has explicitly
adopted a socio-economic plan specifically grounded
on social market economy, it has been observed that
past administrations have implemented programs with
similar objectives.
ASEAN ECONOMIC
COMMUNITY
The AEC is the realization of the end goal of economic
integration as espoused in the Vision 2020, which is based
on a convergence of interests of ASEAN Member
Countries to deepen and broaden economic integration
through existing and new initiatives with clear timelines. In
establishing the AEC, ASEAN shall act in accordance to
the principles of an open, outward-looking, inclusive, and
market-driven economy consistent with multilateral rules
as well as adherence to rules-based systems for effective
compliance and implementation of economic
commitments.
AEC IMPACT ON PH
The economy-wide effects of the asean Free Trade Area
(afta) on the Philippine economy are computed using the
Global Trade Analysis Project (gtap) model of the world
economy. Of the 40 industries representing the Philippine
economy that were simulated to assess the impacts of afta on
sectoral output, 24 industries declined. However, the order of
magnitudes of the percentage declines is low, except for rice,
whose output decreased by about 4.5 percent.
Notwithstanding the contraction of production in the majority
of industries, the country comes out a net gainer in aggregate
output by around 1.4 percent in total gross domestic product.
This implies that, overall, the Philippines is slightly better off
with the preferential trade liberalization, with an equivalent
variation gain of us$237.4 million.
THANK YOU!

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ECONOMIC SYSTEM OF THE

In the Early Philippines The Philippines in the 19th Century

American rule in the Philippines was paternalistic. Manuel Quezon became

• Electrical machinery, equipment: US$32.9 billion

Large population that is Diverse geographic and Thriving Business

Low rates of investment: Governance High levels of income

Problematic security Strict bank secrecy and

Gross Domestic Product Gross National Product

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