Economical context
Economic growth in the Philippines remained robust at 6.2% in 2018, after 6.7% in 2017 and an average of 6.3% over the 2010-2016 period. Demand side, in 2018, public spending (+ 12.8%) and private investment (+ 13.9%) - mainly in the field of infrastructure and construction - were the main drivers.
Household consumption, fueled by remittances from overseas Filipinos, rose 5.6%, up from 5.9% in 2017, mainly due to inflationary pressures. The external sector contributed negatively to growth, with a record trade deficit of - 41.4 billion USD. The traditionally low investment rate continues to grow, with a 14% increase in gross fixed capital formation (GFCF) in 2014. GFCF accounted for 27% of GDP, after 25.1% in 2017 and 24.4% in 2016.
On the supply side, growth was driven by the services (+ 6.8%) and industry (+ 6.7%) sectors, while the agricultural sector remained sluggish (+ 0.9%). The economy is mainly driven by services (58% of GDP) , in particular the business process outsourcing segment "With call centers first and foremost.
The tourism sector, in progression, is still underdeveloped with 7.1 million visitors in 2018 (+ 7.6%). The industry remains little diversified (34% of GDP), concentrating on the electronics sector (half of exports and more than a quarter of the country's imports) and agro-food industries. Despite the country's significant potential, the agricultural sector (8% of GDP) remains underdeveloped (low mechanization, lack of funding and infrastructure) and highly dependent on weather conditions.
The government expects a growth of 6 to 7% for 2019. Mid-April, the main financial institutions have slightly revised down their forecasts, around 6.4% for 2019 (against 6.6% previously) and 2020.
These adjustments are mainly attributable to the delay in the approval of the state budget (law promulgated on April 15) which weighs on the growth of public expenditures, the widening of the trade deficit and the El Niño climate phenomenon which causes agricultural losses. Private consumption is expected to remain at a robust level driven by the sharp slowdown in inflation. In Q1 2019, growth slowed to + 5.6%.
source [2019-11-06] : https://www.diplomatie.gouv.fr/fr/dossiers-pays/philippines/presentation-des-philippines/