Philippines

FROM THE REDACTION

The archipelago of Philippines consists of 79 provinces and 116 towns. Philippines suffered less during the 1998 Asian financial crisis.

In 1999 the economic growth indicator made up 2,4%, in 2000 – 4,4%, but in 2001, when economic downturn was observed in the world, this indicator in Philippines made up 3,2%, in 2002 – 4,3%, in 2004 – 6% – export, services, and agriculture sectors were improved.
The price of fuel in the country is high, the rates and inflation indicator are high as well. A large budget deficit in the country stipulated accumulation of public debts.
Philippines’ GDP indicator made up 6,3% in 2004, while GNP indicator – 6,1%, that is lower than the GDP indicator, which is uncharacteristic for Philippines. Export has increased by 13%, import – by 5,7%. Thanks to good weather conditions the growth in agriculture, fishing and forestry made up 6,3%.
The production sector, that makes up 33% of the GDP, has increased by 5,6%, services sector, that makes up 47% of GDP – by 6,9%. Though the economy did not manage to create a sufficient number of jobs and the unemployment indicator is still high – 13,7%. In 2004 the inflation indicator was high as well, which was stipulated by rising in price of food products, fuel, and transport. The fuel prices are increasing all over the world.
The government of Philippines has elaborated the country’s economic development plan for the period of 2005-2010, though the objectives indicated in the plan can be considered as ambitious ones. In accordance with the plan, six million jobs must be created during the period of 6 years, though if we look at the indicators of the previous years, from 1990 to 2003 only 800 000 new jobs were created each year. Whether the government of Philippines will reach its objectives or not, the unemployment rate will remain high. For balancing the budget of 2009, budget receipts should increase by 15% annually, while in 1999-2003 they increased by 6% only.
The main reason for the state’s low income is the budget deficit, that is why the state is implementing reforms in the tax system and introduces more than 10% taxation. The new reforms and objectives are becoming a subject for analysts’ discussion. There is an argument between the cabinet and the specialists, but both parties have similar views – the longer it takes to reach a consensus the later the planned objectives will be reached.
The Chamber of Commerce and Industry of Philippines is the largest organization of the country, which includes local chambers, enterprises and commercial organizations. The objective of the organization is to unite micro, small, and medium-sized enterprises, which will contribute to improving of the economic situation in the country and attraction of foreign investments. In 2005 Philippines concluded a cooperation agreement with Argentina, which will contribute to the development of the economies of the two countries. The organization also offers consultations to any companies or business associations, which are interested in entering the Chinese market. The organization has representative offices in many countries including the US, the UK, and other Asian countries.