According to allcitypopulation, the Philippines is an archipelago nation located in Southeast Asia, consisting of 7,641 islands and islets. It is bordered by the South China Sea to the west, the Philippine Sea to the east, and the Celebes Sea to the south. It is strategically located between two of Asia’s major powers—China and Japan—and has close economic ties with many countries in the region. The total land area of the Philippines is approximately 300,000 square kilometers (115,830 sq mi). According to Petwithsupplies, the capital city of Philippines is Manila with a population of 1,780,000 (2015 census) (including suburbs 12,880,000). Other major cities include Davao City, Cebu, Zamboanga, Cagayan de Oro City, Parañaque City, Valenzuela City.
The economy of the Philippines is a developing market economy with a gross domestic product (GDP) estimated at $530 billion in 2020. The country’s per capita GDP was estimated at $2,982 in 2020. The Philippine economy has grown steadily over recent years with an average growth rate of 6% per year since 2010.
Agriculture remains a major sector of employment accounting for around 30% of total employment as well as contributing 13% to GDP in 2020. Major agricultural products include rice, corn, coconut oil, sugarcane and bananas. Industry also accounts for a significant portion of GDP with manufacturing accounting for around 25%. Major industries include electronics manufacturing services (EMS), automotive production and shipbuilding.
In addition to agriculture and industry services account for 57% of GDP in 2020. Major service industries include tourism which accounts for 4% of GDP as well as financial services which account for 6%. Other important sectors include telecommunications which account for 5%, transport and storage which account for 4%, real estate which accounts for 3%, business process outsourcing (BPO) which accounts for 2%, retail trade which accounts for 1%, and energy production which also accounts for 1%.
Foreign Trade of Philippines
The Philippines is an open economy with a large and diversified range of foreign trade. In 2020, its total exports amounted to US$61 billion while total imports were US$70.1 billion. The Philippines is a major exporter of semiconductors and electronics which account for around 54% of total exports in 2020. Other major exports include coconut oil, petroleum products, transport equipment, machinery and equipment, textiles and garments as well as chemicals.
The main trading partners of the Philippines are Japan, the United States, China, Singapore and South Korea which collectively account for around 60% of total exports in 2020. Major imports into the Philippines include electronic products such as semiconductors which account for around 37% of total imports followed by transport equipment which accounts for 10%. Other important imports include mineral fuels and lubricants with a value of US$5 billion while iron or steel products account for 10% with a value of US$3 billion during the same period.
In terms of foreign direct investment (FDI), the Philippines has seen strong growth over recent years with inflows increasing from US$4.4 billion in 2014 to US$7.7 billion in 2018 according to figures from the United Nations Conference on Trade and Development (UNCTAD). FDI inflows are mainly concentrated in manufacturing (37%), retail trade (30%), real estate (13%) and financial services (10%). The majority of FDI comes from Japan, Singapore, Hong Kong SAR China as well as the United States and South Korea who are all major investors in the country’s economy.
Major Trading Partners of Philippines
The Philippines is a major trading partner in the Asia-Pacific region and has established strong trade ties with its neighbors. The country’s main trading partners include Japan, the United States, China, Singapore and South Korea which collectively account for around 60% of total exports in 2020.
Japan is the Philippines’ top trading partner and accounted for around 14% of exports in 2020. Major exports to Japan include electronics products such as semiconductors which account for around 37% of total exports followed by transport equipment which accounts for 10%. Other important exports to Japan include coconut oil, petroleum products, textiles and garments as well as chemicals.
The United States is the second largest trading partner of the Philippines and accounted for around 12% of total exports in 2020. Major exports from the Philippines to the US include electronics such as semiconductors which account for around 37% of total exports followed by transport equipment which accounts for 10%. Other important exports to the US include coconut oil, petroleum products, textiles and garments as well as chemicals.
China is another major trading partner with whom it has a close economic relationship both through trade and investment. In 2020, China accounted for 9% of total Philippine exports with electronic products such as semiconductors accounting for around 37% followed by transport equipment which accounts for 10%. Other important export items to China include coconut oil, petroleum products, textiles and garments as well as chemicals.
Singapore is a major investor in the Philippine economy and accounted for 5% of total Philippine exports in 2020 with electronic products such as semiconductors accounting for around 37%, transport equipment accounting for 10%, coconut oil accounting for 8%, petroleum products accounting for 7%, textiles and garments accounting for 6%, chemicals accounting 5%.
South Korea is another major investor in Philippine economy and accounted 4% of total Philippine export volume in 2020 with electronic products such as semiconductors accounting for around 37%, transport equipment accounting 10%, coconut oil 8%, petroleum products 7%, textiles and garments 6%, chemicals 5%.
Major Imports and Exports of Philippines
The Philippines is a major exporter of a variety of goods and services. The country’s top exports include electronics, transport equipment, coconut oil, petroleum products, textiles and garments, chemicals and others.
Electronics exports are the largest contributor to the Philippine export market with semiconductors accounting for around 37% of total exports in 2020. This is followed by transport equipment which accounts for 10%. Other important electronics exports include computer parts, telecommunications equipment and consumer electronics.
Transport Equipment includes aircraft and parts as well as motor vehicles and parts. In 2020 this accounted for 10% of total Philippine exports. Other important transport equipment exports include ships and boats as well as railway rolling stock.
Coconut oil is an important export item for the Philippines with 8% of total exports in 2020 being coconut oil based products such as cooking oils, margarine and soap.
Petroleum products account for around 7% of total Philippine exports in 2020 with fuels such as diesel fuel, gasoline, kerosene and jet fuel being exported to countries around the world.
Textiles and garments are another important export item with 6% of total Philippine exports in 2020 being textile based products such as woven fabrics, knitted fabric, apparel items such as shirts and trousers as well as footwear items such as shoes and slippers.
Chemicals also form an important part of the Philippine export market with 5% of total exports in 2020 being chemical based products such as fertilizers, insecticides/pesticides, pharmaceuticals/drugs etc.
In terms of imports the Philippines mainly imports electronic products such as semiconductors which account for around 37% followed by transport equipment which accounts for 10%. Other important imports include mineral fuels (oil), machinery (electrical machinery & machinery parts), iron & steel articles (iron & steel bars etc.), organic chemicals (plastics) etc. The country also imports food items from all over the world including grains (wheat & rice), fruits & vegetables (bananas & potatoes), dairy products (milk powder & cheese) etc., primarily from its trading partners like China, Japan & USA amongst others.