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Philippines economic development has been very fast in recent years. However, in last three
decades, growth rate has been fastest. Real gross domestic product for this time was estimated
to be 7 percent, but growth has slowed down a bit in 2008, which came to about 4.5% because
of world financial crisis.

Economic development in Philippines economy has been because of high government


spending. A hard working service sector and large allowance from millions of Filipinos working
abroad played an important role in Philippines economic development. Since, Macapagal-
Arroyo came into power in 2001 there has been an economic growth of 5 percent. Still,
Philippines needs a further increase in growth rate in order to sustain growth in economy.

More economic development of Philippines is required to alleviate poverty from that country and
address imbalances in distribution of income. It also stresses on high population growth.
Macapagal-Arroyo also has taken great care introduce new revenue measures to constrict
expenditures of country. New developments in economy of Philippines can be expected
because of positive efforts in lowering fiscal deficits, narrowing debt and debt service ratios.
There has been an increase in expenditure in infrastructure of country. Economic prospects of
Philippines have grown, which in turn would augur well for economic development at
Philippines.

Though there has not been any negative impact on macroeconomic outlook of
Philippines economy, yet this nation has faced some setbacks because of various external
reasons. It has also faced challenges from regional competitors. Main focus of Philippines has
been to develop employment opportunities and lessen poverty. Long term Philippines economic
development can only be possible if these areas are properly taken care of.

Purchasing power parity of GDP for fiscal year 2008 was $327.2 billion, while official exchange
rate of GDP was $172.3 billion. Per capita GDP as was recorded in 2008 was $3,400 and 4.5%
is real growth rate in gross domestic product. Agricultural sector contributes about 13.8% to
GDP, 2008 of Philippineseconomy and 31.9% is received from industry. From service sector of
Philippines economy contribution towards Philippines GDP is about 54.3%.

Philippines economic development is also result of agricultural products, which includes corn,
sugarcane, pineapples, coconuts, bananas, rice, cassavas, mangoes and pork, eggs, beef and
fish. Major industries that contribute to economic development of Philippines are wood products,
electronics assembly, food processing, footwear, garments, pharmaceuticals, chemicals,
petroleum refining and fishing.