|
The Philippines was less severely affected by the Asian financial crisis of 1998 than its neighbors, aided in part by annual remittances of $6-7 billion from overseas workers. 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 4.4% in 2002 and 4.2% in 2003, reflecting the continued resilience of the service sector, gains in industrial output, and improved exports. 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 MACAPAGAL-ARROYO Administration has promised to continue economic reforms to help the Philippines match the pace of development in the newly industrialized countries of East Asia. The strategy includes improving the infrastructure, strengthening tax collection to bolster government revenues, furthering deregulation and privatization of the economy, enhancing the viability of the financial system, and increasing trade integration with the region. Prospects for 2004 will depend on the economic performance of two major trading partners, the US and Japan, and on increased confidence on the part of the international investment community.
|
|
Textiles, pharmaceuticals, chemicals, wood products, food processing, electronics assembly, petroleum refining, fishing.
|
|
Rice, coconuts, corn, sugarcane, bananas, pineapples, mangoes; pork, eggs, beef; fish.
|
|
