Philippines Economic Update October 2019

Key Findings
● Economic growth slowed in the first half of 2019, driven by a rapid deceleration in
investment growth due to contraction in public spending and weaker global economy.
Nevertheless, the Philippines expects to sustain progress in poverty reduction.
● Amidst rising global uncertainties, the Philippine economy remains strong and is
projected to grow 5.8% in 2019, before recovering to 6.1% and 6.2% in 2020 and
2021, respectively.
● In the short term, fast tracking the implementation of recently approved game-
changing reforms would help to achieve inclusive growth. In the long-term, promoting
competition to generate quality jobs will enhance the impact of growth on poverty
reduction in the Philippines.

Source: Philippines Economic Update October 2019

https://www.worldbank.org/en/country/philippines/publication/philippines-economic-update-
october-2019-edition

Philippines: Economy

● Philippine GDP expected to grow by 6.0% in 2019 and 6.2% in 2020 – ADO
2019 Update
 ● Philippine inflation rates forecasted at 2.6% in 2019 and 3.0% in 2020 – ADO
2019 Update
● Per capita GDP growth for the Philippines is expected at 4.8 in 2019 and 2020 –
ADB Report
Source: Philippines: Economy
Anonymous - https://www.adb.org/countries/philippines/economy#tabs-0-0

Philippines Economic Outlook

October 15, 2019

Economic growth appears to have accelerated in the third quarter. The PMI marginally improved
in Q3, boding well for the manufacturing sector. Moreover, cash remittances were robust in July,
which, coupled with markedly lower inflation in Q3, should have supported private consumption
spending. That said, a sharp decline in capital goods imports in August suggests fixed investment
was still weighed on by the delayed 2019 budget and elevated borrowing costs in Q3. In other
news, on 1 October, the 2020 National Budget was sent to the Senate for approval. The proposed
budget is largely a continuation of the prior year’s fiscal agenda, and includes a 12% increase in
expenditures, with capital spending primarily designated to the government’s infrastructure
program. The budget presents a 6-7% GDP growth target and a fiscal deficit of 3.0% of GDP in
2020, which are largely in line with FocusEconomics forecasts. Although political gridlock upheld
passage of the 2019 budget, the 2020 budget is expected to be approved before year-end.

Philippines Economic Growth

The economic outlook is positive for 2020, thanks to public spending on infrastructure projects,
which should boost fixed investment; an accommodative monetary stance; and sustained
consumer spending. However, ongoing U.S.-China trade tensions, deteriorating outlooks in
major trading partners and a fragile tech sector represent the main risks to the outlook.
FocusEconomics panelists see GDP expanding 6.1% in 2020, which is down 0.1 percentage
points from last month’s forecast, and 6.3% in 2021.

Source: Philippines Economy - Gdp, Inflation, Cpi and Interest Rate

FocusEconomics - https://www.focus-economics.com/countries/philippines
Philippine GDP records a 5.5 percent growth in Q2 2019
Reference Number: 2019-136
Release Date: August 8, 2019
The country’s Gross
Domestic Product (GDP)
grew year-on-year by 5.5
percent in the second quarter
of 2019.

Main drivers of growth for

the quarter are Trade and
Repair of Motor Vehicles,
Motorcycles, Personal and
Household Goods;
Manufacturing; and Other
Services.

Among the major economic

sectors, Services had the
fastest growth with 7.1
percent. Industry registered
a growth of 3.7 percent.
Agriculture, Hunting,
Forestry and Fishing had a
growth of 0.6 percent.

Net Primary Income (NPI) from the rest of the world and Gross National Income (GNI) grew by
3.1 percent and 5.1 percent, respectively.

With the country’s projected population reaching 107.9 million in the second quarter of 2019, per
capita GDP grew by 3.8 percent. Meanwhile, per capita GNI and per capita

Household Final Consumption Expenditure (HFCE) posted corresponding growths of

3.5 percent and 3.9 percent.

Source: https://psa.gov.ph/nap-press-release

GDP improves in Philippines

Gross Domestic Product of the Philippines grew 6.2% in 2018 compared to last year. This rate is
5 -tenths of one percent less than the figure of 6.7% published in 2017.

The GDP figure in 2018 was $330,910 million, Philippines is number 40 in the ranking of GDP
of the 196 countries that we publish. The absolute value of GDP in Philippines rose $17,290
million with respect to 2017.
The GDP per capita of Philippines in 2018 was $3,103, $114 less than in 2017, when it was
$2,989. To view the evolution of GDP per capita, it is interesting to look back a few years and
compare these data with those of 2008 when the GDP per capita in Philippines was $1,941.
If we order the countries according to their GDP per capita, the Philippines is in 133th position,
its population has a low level of affluence compared to the 196 countries whose GDP we
publish.
Source:Philippines Gdp - Gross Domestic Product 2018

https://countryeconomy.com/gdp/philippines