The Philippines' Economy
The Philippines at a Glance
An overview of the Philippine economy - a young population, services-led growth, remittances and consumption - and why it grew later than its neighbours.
The Philippines has around 115 million people across more than 7,000 islands.
Structure
- Services dominate: business process outsourcing, retail, finance and tourism.
- Manufacturing is smaller than in Vietnam or Thailand, mainly electronics assembly.
- Consumption drives growth, supported by remittances.
Growth history
- In the 1950s, the Philippines was one of Asia’s richer countries.
- It lagged in the 1980s and 1990s due to political turmoil and crises, earning the label “sick man of Asia”.
- Growth picked up to around 6 percent a year in the 2010s.
Young population
A median age in the mid-20s, a potential demographic dividend.
English
Widespread English skills support outsourcing and overseas work.
Comparison with India
Like India, the Philippines has a services-led pattern, English skills and large overseas workforces.
The mall economy
Giant malls in Manila bustle with shoppers spending money partly sent home by family members working abroad.
Thinking every Asian economy grew through factories
The Philippines' growth is services- and consumption-led.
Key takeaways
- The Philippines has about 115 million people.
- Services and consumption drive growth.
- It lagged in the 1980s-90s but grew faster in the 2010s.
- English skills support outsourcing and migration.
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