South East Asian Trips

The economy of the Philippines is based both on agriculture as well as some light industry (such as textiles, pharmaceuticals and food processing) and support services. Although the per capita GDP of the country isn't too bad (around US$3600), the wealth is greatly concentrated in the hands of a few (remain Imelda Marcos' thousands of shoes'). Nearly a third of the country's population lives below the poverty line. The Philippines, like most of South East Asia, was hit badly in the financial crisis of 1998, with growth rates falling to -0.5%. However, recovery tactics have helped to some extent and the government is trying hard to initiate economic reforms aimed at helping the Philippines catch up with its more affluent neighbours.

Lost in one's dream on a tropical island, it is easy to forget the increasing environmental problems which faces the Philippines. Already 90 percent of the forest has been cut down. Only 6% of the coral reefs in the seas around the islands are still completely intact. Over 40 percent of the Filipinos flock to the already overcrowded towns and cities to seek employment, and more than two-third of the rural population live on or below the the poverty line. Over half the working population are employed in the primary sector, particularly in the argricultural and fishing industries. Vegetables, fruits, nuts and roof crops like sweet potatoes are cultivated in all regions. Coconut palms grow on more than 10 percent of the land and their by-products have placed Philippines in the front rank of exporters in this field. The country also export bananas, sugar, coffee, rubber and abaca, the famous "Manila hemp" for rope making. Rice, the population stable food, is largely imported. Large hopes are also being placed in mining such as copper, iron ore, silver, lead, manganese, cadmium, platinum, chrome and mercury. Today, unemployment rate in Philippines is over 30 percent.

Some facts
GDP: US$282 billion
GDP per head: US$3600
Annual Growth rate: 2.9%
Inflation: 8%
Major industries: Textile, Electronics & electrical products, Pharmaceuticals
Major trading partners: USA, Japan, Taiwan