Philippine Economy

Philippine Economy

       Economy refers to a process of production, distribution, and consumption of certain goods and services by individuals in the society.

Philippine Economy is the 39th largest in the world, according to 2014 International Monetary Fund statistics, and is also one of the emerging markets. The Philippines is considered as a newly industrialized country, which has been transitioning from one based on agriculture to one based more on services and manufacturing. In 2014, the GDP by Purchasing power parity was estimated to be at $692.223 billion

The Philippines’ economic freedom score is 62.2, making its economy the 76th freest in the 2015 Index. Its score has increased by 2.1 points since last year, with notable improvements in financial freedom, freedom from corruption, and labor freedom outweighing declines in business freedom and the management of public spending. The Philippines ranks 13th out of 42 countries in the Asia–Pacific region, and its overall score is above the world and regional averages.

Registering one of the 10 best score improvements in the 2015 Index, the Philippines has charted an upward trajectory of economic freedom for the past five years, further advancing into the “moderately free” category. Wide-ranging reforms to address structural weaknesses and improve overall economic competitiveness have put greater emphasis on improving regulatory efficiency, enhancing regional competitiveness, and liberalizing the banking sector. Demonstrating a high level of resilience and overcoming the devastating impact of the massive typhoon that ripped through the central part of the country, the Philippine economy has recorded an average growth rate exceeding 5 percent over the past half-decade.

Despite notable progress since 2011, however, lingering institutional challenges will require a deeper commitment to reform. Corruption continues to be a serious cause for concern, jeopardizing prospects for long-term economic development. The inefficient judiciary, which remains susceptible to political interference, does not provide effective protection for property rights or strong and transparent enforcement of the law.

Finalyn Jaji