The Economy of the Phillipines Per Capita Income: Since I am the first person reporting, I would like to explain what per capita income means. The per capita income of a certain country is the GDP of that country divided by the total population. In the Phillipines the per capita income is approximately $700. When compared to the per capita income of the United States, which is about $22,000, it is easy to tell that the economy of the Phillipines is ver poor. GDP: Growth: 5.7% GDP= 82.8 % FROM AGRICULTURE: 17.1 IMPORTANT % FROM MANUFACTURING: 18.9 % FROM SERVICES: 39.2 MOST IMPORTANT % FROM GOVERNMENT: 7.9 Exports: Traditionally, the Phillipines has been primarily an exporter of raw materials and an importer of manufactured goods. This is the role that many third world countries play in the global economy. Electronic and automotive parts, along with garments are the leading merchandise exports of the country.
However, the Phillipines also relies heavily on import inputs. The country also exports bananas, coconuts, copper, gold, lumber, pineapples and sugar. Imports: The Phillipines mostly imports manufactured goods. Certain items remain subject to import regulations such as narcotic drugs, firearems, ammunition, etc. Their chief imports include chemicals, machinery, and petroleum.
Trading Partners: The Phillipines, like any other country, cannot produce everything that it needs. Instead, it relies heavily on foreign trade. Specialization in production allows for each nation to produce what it produces best, and to trade for products which it cannot produce as well (In case your teacher asks, this means that if you are better at one thing and I am better at another, rather than each of us trying to do both, we would each do what we are best at. Then, we would exchange what we had produced and both be better off than had we tried making both things on our own). It trades mainly with Japan and the United States.
The Phillipines maintain high tariff rates and protective barriers on sensitive agricultural products. Major Economic Activities: The Phillipines has embarked on economic reforms and market liberalization measures in the past two years. As a result of this the Phillipines has started to show signs of recovery (FROM WHAT???). Even though the unemployment rate is very high, it has dropped from 10.5% to 9.8%, a considerable move for a two year period. In the Phillipines, the minimum age for employment is 15. Their constitution prohibits forced labor.
All workers have the right to join unions. The prices are generally determined by free market forces, with only a few exceptions. Conclusion: **IF THIS PROJECT IS ABOUT CAPITALISM AND FREE MARKETS** Although the Phillipines economy is weak, and the unemployment rate is high, the Phillipines is showing some signs of life. It has recently become a more open economy, allowing for more free trade and free market forces. As this process continues, trade with the Phillipines will increase, and eventually, a more capitalistic and successful economy will emerge.