Economy of the Philippines

The Philippines is a newly industrialized country in South-East Asia. In 2004, it was ranked as the 25th largest economy by the World Bank according to purchasing power parity. It is the fastest-growing economy in Southeast Asia, posting a GDP growth rate of 7.3% in the year 2007, its fastest pace in three decades and has been compared to the economy of India in its sudden and rapid growth.

On January 31, 2008, Philippine 2007 GDP grew 7.3%, the fastest in 31 years: its economy grew seasonally adjusted 1.8%, faster than expected in the 4th quarter; Frederic Neumann, HSBC economist stated that: "Evidently economic momentum is very strong, therefore if we see a slowdown in economic growth, it would only materialise in the second half of the year. We therefore see a reduced need for the central bank to cut rates aggressively now and we might see that today with a 25 basis point cut."

The industrial sector is concentrated in the urban areas, especially in the metropolitan Manila region and has only weak linkages to the rural economy. Inadequate infrastructure, transportation and communication have so far inhibited faster industrial growth.

The majority of the top ten BPO firms of the United States operate in the Philippines. Total jobs in the industry grew to 100,000 and total revenues are placed at $960 million for 2005.

Transport of people, goods and services in the country is done mostly by motorized vehicles, boats and planes. Land transportation vehicles are imported, except for the jeepney and tricycle which are locally made.