The Philippines. One of the most dynamic economies in the East Asia Pacific region. With increasing urbanization, a growing middle class, and a large and young population. But this country has seen many ups and downs in the history. From one of the contenders of Asia's tiger economy to the lower income country, the Philippines has gone through many changes.
The Philippines was once a model of development, and second among east Asian economies after Japan.
In the 1960s, when South Korea was a land of peasants, the Philippines was one of Asia's industrial powerhouses. They produced consumer goods, processed raw materials and had assembly plants for automobiles, televisions, and home appliances. But in the 1970s and 80s, the Philippines economy declined, while its neighbors such as Japan, South Korea, and Taiwan made exponential growth.
The major reason behind this decline was the country's protectionist policy. You see, after world war 2 imports of the Philippines increased drastically, and at the same time exports reduced. That led the country to follow protectionist policy. Due to this they lost many valuable investments in the region at that time. Other reasons include political unrest, social unrest, and corruption. Due to these reasons the Philippines fell out of the race of Asian tiger economy.
But by the start of 2000s the Philippines economy started to grow again. But how?
You see, many countries achieve their economic growth by slowly transitioning from agriculture to industry to service sector. Yet for Philippines this transition was very quick. The service sector of the Philippines overtook the industrial sector in terms GDP contribution during the early 80s. And increased from 36% in 1980 to 60% today. The services sector today employs 56.7% of the country’s workforce, which is more than the agricultural, and industrial sectors combined. The main reason behind the growth of service sector is that, the Philippines was a former US territory. And the US had a very strong cultural impact on Philippines. More than 90% of the people in the country speak English as their 2nd language. The cultural similarities gave them the opportunity to become the most popular business process outsourcing country. Plus other back office jobs are very well done here. And all of this for significantly low pay than the western countries.
Now if you look at the industrial sector, it still holds 30% share in the country's GDP. And employs 18% of the country’s workforce.
This is why Philippines economy turned to the service sector so quickly in the 80s and 90s.
Another source that brings a big chunk income is remittance. The remittance accounts for more than 9% of the Philippines GDP. This makes them the 4th largest in terms of remittance. The major reason behind this is, the country has a large and young workforce, in fact the average age of a Philipino is just 25 years. But they lag to create well paid jobs to this huge manpower. So in order to make more money people tend to go work in foreign countries. Another reason is, the Philippines has a good education system which is suitable for many foreign countries. So the Philipino's usually have the required skills to be hired.
Well, things look pretty good till here. But wait, we still haven't talked about the challenges that Philippines is facing.
First let's talk about FDI's.
Compared to other regional countries, the Philippines has quiet low flow of foreign direct investments. There are many reasons for that, like relatively poor infrastructure which is a main problem for industrial as well as tourism sectors. Also some economic policy are making it harder for companies to do business. Today the Philippines is ranked 95th in ease of doing business index. And this is not good compared to other countries in the region.
Now if we take the service sector, which is the main pillar of the economy, then it might also face challenges in the future.
Now if you look about the present. Then lockdowns due to the pandemic made the situation worse for the domestic economy of Philippines. You see, the Philippines is still heavily dependent on cash transactions. And majority of people don't even have a bank account. And this is making it harder for the government to provide relief packages. Even though the Philippines has managed to lift many people out of extreme poverty, this crisis could lead to increased poverty rate, and also income inequality between the urban and rural, which is not good in microeconomic terms.
So, in order to make economic progress, the Philippines really need to work on stuff.
#philippineseconomy #economy
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@zansabilhudaianggara16523 years agoI am from indonesia, i believe the philippines and indonesia will become the largest economies in asia. 811
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@sreejeshkanakovil23433 years agoI am an indian, but i have visited this country. This is a beautiful country to visit. They follow different cultures in the philippines. There are more than 70 islands in the country. I wish all success. 839
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@brownguy85663 years agoWe indians love philippines best of luck mahal kita to all. 393
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@biancat8883 years agoGod bless philippines love from indonesia. 373
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@purika83243 years agoTo all the indians and indonesians that left beautiful comments, thank you! I wish you all the blessings in the world let us all rise together. This century is the asian century. 88
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@swastikgaming77443 years agoGo phillipines. india is with you. . 243
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@samuelteddy.4393 years agoPoor mindset immediately sees a surplus as an opportunity for consumption. Rich mindset seeks to spend their time, resources, and energy on work that continues to pay off long after the effort has been invested. 136
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@AlgonquianPatriota05213 years agoI' m mexican and i just wanted to say, filipinos ustedes pueden. Dios los bendiga. 28
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@rajvashishtha13423 years agoGo the philippines go lot' s of love from india. 238
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@thegreenwarriors30143 years agoI really love this country so much. Filipinos are the nicest people on earth. I love from netherlands. 56
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@antongigolo42113 years agoNow filipinos vote wisely, wag ng magpabayad ng boto sa mga folpolitikong grabber na nagpapahirap sa atin gomawa ng batas para sa kanya lang at sa kapartido. 288
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@simonjames94813 years agoFunfact: philippines is the one of the few remaining country to have " closed fdi" philippines just need to open its fdi and then it will become rich in just a few years. 107
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@gon_freecs40303 years agoI loved this video, there' s so many positive information about the philippines~~. 64
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@lyonnebrazildoctor19553 years agoThe only thing the Philippines can surpass this challenge for a long time is balancing & supporting every industry we can offer locally & internationally that will make us good, better, best & great like other nations that made it happen. We need to open up for infinite possibilities particularly in winning a win solution. And I guess, I think the Philippines should stop voting on politicians that are only for a show/entertainment. We need leader extending their arms to be a servant leader and not pick pocketters. The Philippines is great we just need to walk on the right path. .....Expand213
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@f4u21ramon83 years agoGood job philippine the tiger of asia love from indonesia. 35
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@evangelicacoronacion87253 years agoThank you for this informative content. The philippines as rising economic tiger of asia. 15
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@keurikeuri78513 years ago" if they did itpossibly the best statement for me in this video. 22
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@MarkQuijano3 years agoThis is an interesting content. Thanks a lot for doing a lot of research for facts about the philippines. 6
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@none53493 years agoFinally, we need 100 fdi and the revival of nuclear power plant. 139
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@xpro20093 years agoIt' s hard for locals to start and do business in the phil. But chinese can just zipp thru. the bureaucracy is well catered for these group filipino inventors and people with great skills have to migrate to prosper. ...Expand121
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@24emerald3 years agoExactly, lack of fdi' s (foreign direct investment) because of protectionism is the thing holding back the philippines. I' ve been saying it for. ...Expand53
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@Yalla_Habibi_Cat12 years agoPhilippines should promote their lovely white sand beaches and hence the tourism. I would love to visit one day. love from india. 5
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@tata60593 years agoI love the philippines. Visited many times. Travelled arpund luzon and cebu. I wanna live there but it is a little hard to find a job as a japanese there. Not many japanese companies there compared to vietnam ir thailand. 44
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@asiantwist25003 years agoVery informative indeed, thanks for that constructive vlog. 6
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@dragonborn32833 years agoLove from bangladesh. Meet many philippines friends in facebook. So cordial they are. 35
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@johannromuga48413 years agoAs a filipino, i feel like these problems you mentioned stem from our lack of good leadership and planning. For however good and crafty a filipino is individually,. ...Expand6
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@hecman21383 years agoThe government plans to open fdi, i don' t know when but they want the philippines to recover quickly due to covid-19 and also to help the government. ...Expand82
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@renzanthonyroxas68143 years agoNice content, you showed the ups and down. Fair enough. 19
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@anitagubalane75103 years agoEven though, the philippines has a lot of negativity things that surrounds us but the people there are giving their best to survive in daily life. 6
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@mikeetwentysix98043 years agoStill this country is the most versatile country in the world in my opinion. Biased aside im looking on the philippines current adaptability to fast and ever changing times. 41
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@ShyamBabu-lm7ke3 years agoA beautiful country in asia. Hope could visit in future. 5
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@natsumidesu80193 years agoThree things that the philippine government should develop more, the agriculture and tourism sector plus fish culturing method to supply the world with. ...Expand5
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@AthonLastForever3 years agoStill a lot of work to do but we are getting there. 90
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@playanakobi44073 years agoWe need to focus on education and innovation as well. Hoping more filipinos will hold higher positions and business owners so we can export our own products. ...Expand5
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@linobocarlgeomari94873 years agoA lot of indian here, why is it in the internet it is always indians and filipinos has a bro vibes in asian server? 21
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@kevintangerokayoeh15713 years ago" for all of 2020, gdp plunged 9. 5% as economists expected, the largest drop in government data going back to 1946. Still, the quarterly figures indicate . ...Expand6
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@novemharrison45242 years agoIm from philippines its good to hear some positive words to my country. 1
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@zorinx65903 years agoThe dollar is slowly getting smaller in the ph it now 48 previously its 52. 48
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@korosuuu2 years agoHello, may i ask where do you get your stock videos?
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@rife_1573 years agoThe main problem of the philippines has a very large population stuffed inside a small country, poverty is still there, increasing teenage pregnancy mostly. ...Expand6
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@pinenayab98883 years agoThe philippines now is asia' s tiger economy and middle income economy country in the world (in fact categorized asstatus in nic -newly industrialized countries) and have big progress as of today, what' s more if philippine industries will open more its doors to foreign investors and lessen her protectionism? Indeed philippines is land of endless possibilities. ...Expand36
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@dennisbriones26693 years agothis is not in Philippines more like somewhere in the Americas or South Asia. 29
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@arcayoskaryllemarie97603 years agoI wish i am the one of the reasons why philippines will becoming better than before thanks for this info. 1
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@marcodelosreyes4703 years agoFor all of my asian brothers who giving us a support thank u. I saw some comments here that thry hate us. 6
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@marieflores50553 years agoWe still hope and pray for our country to rise up according to god' s plan and purpose! God bless the philippines god bless every pilipino people. 8
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@alreadydead76513 years agoWe can only saynow, i don' t know who to blame. The people or the corrupt politicians? I just hope i am still alive when philippines shines the brightest again. 7
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@marvgabato3 years agoBrother your videos looks nostalgic, especially manila area, metro manila are very different now, comparing to your video looks 20 years ago! 1
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@woodman24463 years agoI would be interested in seeing content to do with conflict linked to economics. Such as in ethiopia with the tigray people and the federal government or even with the extraction of resources in congo such as coltan. 8
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@wonderman71663 years agoWe will be having our next presidential elections next year (2022) i really hope the next president is both aperson & a lawyer. Because in my opinion, apresident will know the true status of the ph economy and he/she will know how to fix and improve it. ...Expand24
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@solus20743 years agoThe 1986 constitution slowed down our progress real big. 10
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@frankkasundra46043 years agoKeep it up phillipines you are doing good! 2
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@Liriqos3 years agoThe last shot of shanties is not even in the. 27
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@natsumidesu80193 years agoAgriculture and marine life resources is the future for philippines to offer for the world (food supplier) since fresh water is abundant in the philippines. 1
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@norcalpinoy96183 years agoWe should prioritize our tourism industry sector though because it' s gonna be a major source of income. We have endless beautiful places all over the . ...Expand1
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@realcindydadrana19033 years agoOpen fdi, invest more on infrastructure and developed our economic zone through out the country, then need to improved our agricultural sector to export some of our product and not heavily rely on importation. 24
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@reyconui3 years agoCount the number of times the narrator says " you see. " 7
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@John-xl7yc3 years agoIn terms of fdi congress already approved some changes. 6
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@ramonlacausa3 years agoOur beloved philippines will be great again! 1
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@realcindydadrana19033 years agoBpo, kpo, animation, medicaloutsourcing are billion dollar industry. It takes years that ai can perfectly do what humans do. 4
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@jdelaguardia093 years agoThe main culprit is the 60-40 foreign direct investments restriction in the constitution. 2
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@junellencd3 years agoYes to foreign direct investors, yes to charter change. 36
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@rah1643 years agoAssalamu' alaikuum shalom aleichem philippines we always support you, from indonesia im also love philippines song espec id="hidden27"ially from moira della torre untill my parents confused what language i used to sing those songs mahal kita philippines:. ...Expand98
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@sd37763 years agoI feel like most people who have the power to change the ph in the future would rather just leave the country and go somewhere else. everyone else. ...Expand3
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@manuelluislirio15123 years agoJust review and change the 1987 constitution. Then the fdi inflows will follow. 10
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@maryom3293 years agoI am very proud being a filipino from europe!
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@toxicfandom11373 years agoDude, where did you get that footage? Thats not in the Philippines. Your content i s quite good and on point but I feel like its a bit similar to the other video I watched. It looks recycled. It might be because you have the same research result about the Philippines but its quite similar. .....Expand
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@DensDaPens3 years ago2 things that are critical to accelerate our growth: 1. Infrastructure so our tourism can grow and create more jobs. Thank god we have a president 2. Better internet so more filipinos can have access to outsourced, remote jobs from the west. Which will still fall in the service sector. these are our strengths and opportunities for growth. The growth in the agriculture and manufacturing sector are marginal compared to these 2 industries. Laban pilipinas!. ...Expand12
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@wavemaker20773 years agoThe bpo industry cannot really be considered as a single sector. The bpo industry is basically a conglomeration of all the services sectors combined. The. ...Expand
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@casivyt3 years agoAfter this pandemic you will see the philippines growth! 2
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@SleepingYouSoftlyTV3 years agoDon' t underestimate the power of agriculture!
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@kilimanjaro18933 years agoThe government should start subsidizing the electricity, to make it cheap. 6
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@normagonzales58493 years agoI would suggest that agriculture andof all provinces be supported and let export processing zone be alive again. Salaries and wages must be higher than prime commodities. Educate the poorest among the poor then support them the livelihood. Most importantly lessen population. If possible let only 2 child in every family. Not by using medicines but by transmutation of sex energy. In that way they will lessen birth. Godbless all humanities. With love and light. ...Expand
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@patersondavis38583 years agopoor mindset immediately sees a surplus as an opportunity for consumptionrich mindset seeks to spend their time,resources,and id="hidden33" energy on work that continues to pay off long after the effort has been invested. ...Expand
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@leonoradompor87063 years agoMy hometown donis balance of sunshine and rain, no calamities! 1
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@bye75553 years agoMy hope is that the philippines take one island and make that island the power island with solar panels and a battery system. The philippines would be totally independent and never run out of electrical power. 1
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@garsutajay-bl.65473 years agoGuys are the 4 industries according to rank in philippines?
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@teresitabumidang88313 years agoWe have god to ask for a lifetime best economy in the world, because god will not give us stoned when we ask bread, 7
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@mandalagan22 years agoEven the country has negativities theres still a lot more to love (im from philippine btw)
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@rjreligiosotv3 years agoCreate bill is intended to attract fdis in the philippines. It will also lower the cit to 25% up to 20% in the coming years once signed by the president.. ...Expand
Related videos for The Rising Economy Of Philippines:
i believe the philippines and indonesia will become the largest economies in asia. 811
best of luck
mahal kita to all. 393
let us all rise together. This century is the asian century. 88
india is with you. . 243
lot' s of love from india. 238
We need to open up for infinite possibilities particularly in winning a win solution.
And I guess, I think the Philippines should stop voting on politicians that are only for a show/entertainment. We need leader extending their arms to be a servant leader and not pick pocketters.
The Philippines is great we just need to walk on the right path. .. ...Expand 213
love from indonesia. 35
the bureaucracy is well catered for these group filipino inventors and people with great skills have to migrate to prosper. ...Expand 121
love from india. 5
shalom aleichem
philippines we always support you, from indonesia
im also love philippines song espec id="hidden27"ially from moira della torre
untill my parents confused what language i used to sing those songs
mahal kita philippines:. ...Expand 98
everyone else . ...Expand 3
1. Infrastructure so our tourism can grow and create more jobs. Thank god we have a president 2. Better internet so more filipinos can have access to outsourced, remote jobs from the west. Which will still fall in the service sector.
these are our strengths and opportunities for growth. The growth in the agriculture and manufacturing sector are marginal compared to these 2 industries. Laban pilipinas!. ...Expand 12