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Philippines

General Information & Brief Economic Summary

US Embassy

Government of The Philippines

Trade Associations and Other Key Contacts

General Information & Brief Economic Summary

The Philippines was less severely affected by the Asian financial crisis of 1998 than its neighbors, aided in part by annual remittances of $7-8 billion from overseas workers and no sustained runup in asset prices or foreign borrowing prior to the crisis. From a 0.6% decline in 1998, GDP expanded by 2.4% in 1999, and 4.4% in 2000, but slowed to 3.2% in 2001 in the context of a global economic slowdown, an export slump, and political and security concerns. GDP growth accelerated to 4.3% in 2002, 4.7% in 2003, and about 6% in 2004, reflecting the continued resilience of the service sector, and improved exports and agricultural output. Nonetheless, it will take a higher, sustained growth path to make appreciable progress in poverty alleviation given the Philippines' high annual population growth rate and unequal distribution of income. The Philippines also faces higher oil prices, higher interest rates on its dollar borrowings, and higher inflation. Fiscal constraints limit Manila's ability to finance infrastructure and social spending. The Philippines' consistently large budget deficit has produced a high debt level and has forced Manila to spend a large portion of the national government budget on debt service. Large, unprofitable public enterprises, especially in the energy sector, contribute to the government's debt because of slow progress on privatization. Credit rating agencies are increasingly concerned about the Philippines' ability to sustain the debt; legislative progress on new revenue measures will weigh heavily on credit rating decisions.

Location: Southeastern Asia, archipelago between the Philippine Sea and the South China Sea, east of Vietnam
Capital: Manila
Area: 300,000 sq. km, slightly larger than Arizona
Population: 84,619,974 (July 2003 est.)
Ethnic Groups: Christian Malay 91.5 percent, Muslim Malay 4 percent, Chinese 1.5 percent, other 3 percent
Religion: Roman Catholic 83 percent, Protestant 9 percent, Muslim 5 percent, Buddhist and other 3 percent
Industries: Textiles, pharmaceuticals, chemicals, wood products, food processing, electronics assembly, petroleum refining, fishing

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US Embassy

1201 Roxas Boulevard
Manila, Philippines 1000
Tel. No. : (632) 528-6300 extension 2555, 2246
Fax : (632) 522-3242
http://usembassy.state.gov/manila/

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Government of The Philippines
http://www.gov.ph/

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Trade Associations and Other Key Contacts

Republic of The Philippines
Philippine Institute for Supply Management
http://www.pism.org/

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*This guide is not a complete list of trade associations or publications. We welcome any additions to this document. The Material Handling Industry does not assume a legal liability or responsibility for the accuracy, completeness or usefulness of the information contained herein. The listing of information here does not reflect an endorsement of any of the particular information by the Material Handling Industry.