Philippines (the) flag Philippines (the): Economic outline

Economic Outline

Economic Indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

The Philippines' economy is considered as one of the most dynamic economies in East Asia and the Pacific. In 2021, GDP grew by an estimated 3.2%, mainly due to an increase in private domestic consumption and fixed investment. However, although the Filipino economy has been recovering since the outbreak of the COVID-19 pandemic, recovery has yet to reach full momentum due to persistent downside pressures. According to the IMF, GDP growth is expected to pick up to 6.3% in 2022 and 7% in 2023. Key economic drivers include solid fundamentals, a competitive workforce, a stable job market, steady remittances, and investment in the construction sector (World Bank).

The Philippines' public deficit reached 6.3% of GDP in 2021 and it is expected to decrease to 5.8% in 2022 and 4.9% in 2023. Public debt increased to 59.1% of GDP in 2021 and is expected to further increase in 2022 and 2023, to 62.3% and 63.3%, respectively. Inflation rate also increased in 2021, reaching 4.3% and surpassing the Central Bank’s limit of 4%, mainly due to higher commodity prices and global supply factors. However, according to the IMF, inflation is expected to decrease to 3% in 2022 and remain stable in 2023. Domestic consumption is expected to remain the main driver of the economy, accounting for 70% of GDP. Institutional reforms are needed in business freedom, investment freedom, and rule of law, according to the Heritage Foundation. The COVID-19 crisis has revealed long-existing cracks in the country’ systems and institutions, and the government estimates that the Filipino economy could take a decade to return to pre-pandemic growth. Nevertheless, the Philippines have been gradually recovering following the initial impact of the pandemic. In 2021, the country's economic recovery was boosted by the government’s policy reforms and expansionary fiscal program.

Although the unemployment rate was heavily affected by the pandemic, it partially recovered in 2021, decreasing to 7.8% - a trend that's expected to continue in 2022 (6.8%) and 2023 (5.9%). Inequality in wealth distribution and poverty rates are estimated to have worsened after the pandemic, pushing around 2.7 million more Filipinos into poverty, to a total of 23.7% of the population living in poverty. Nevertheless, Duterte's administration wants to reduce the poverty rate to 17% and expects the economy to reach upper-middle income status by 2022.

 
Main Indicators 201920202021 (e)2022 (e)2023 (e)
GDP (billions USD) 376.82361.49e385.74406.11438.18
GDP (Constant Prices, Annual % Change) 6.1-9.6e4.66.36.9
GDP per Capita (USD) 3,5123,323e3,4923,6213,848
General Government Balance (in % of GDP) -1.6-3.5e-6.3-5.8-4.9
General Government Gross Debt (in % of GDP) 37.051.7e59.162.363.3
Inflation Rate (%) 2.52.6e4.33.03.0
Unemployment Rate (% of the Labour Force) 5.110.4e7.86.85.9
Current Account (billions USD) -3.0512.98e1.50-7.51-7.94
Current Account (in % of GDP) -0.83.6e0.4-1.8-1.8

Source: IMF – World Economic Outlook Database, 2016

Note: (e) Estimated Data

 
Monetary Indicators 20162017201820192020
Philippine Peso (PHP) - Average Annual Exchange Rate For 1 GBP 64.1264.8770.2664.7563.62

Source: World Bank, 2015

 

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Latest Update: June 2022

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