The Philippines economy expanded 6.

4 percent year-on-year in the fourth quarter of 2019, accelerating

from a downwardly revised 6.0 percent growth in the previous quarter but below market consensus of
6.5 percent. This was the strongest growth rate since the first quarter 2018, as both government
spending growth and fixed investment accelerated, and net external contributed positively to GDP while
private consumption continued to rise. Considering full 2019, the economy grew by 5.9 percent year-on-
year, compared to 6.2 percent expansion in 2018, the slowest pace in 8 years, amid delays in budget
approval and weakness in farm output, and missing the low-end of the government's target of 6 to 6.5
percent expansion. For 2020, the government is targeting economic growth of 6.5%-7.5%.

Philippines Manufacturing Production

Summary

Calendar

Forecast

Stats

Alerts

Industrial production in the Philippines dropped 1.8 percent year-on-year in February of 2020, after a
downwardly revised 5.2 percent fall in a month earlier. This was the 15th straight month of decline in
industrial output and the slowest since January 2019, as production shrank less for petroleum products
(-35.9% vs -40.9% in January), electrical machinery (-8.9% vs -10.9%), miscellaneous manufactures (-
24.4% vs -25.4%), transport equipment (-12.1% vs -17.8%), textiles (-9.4% vs -16.3%), leather products (-
26.1% vs -30.1%). However, output fell faster for basic metals (-14.9% vs -3%), tobacco products (-26.1%
vs -12.1%), and footwear and apparel (-4.5% vs -2.1%). In contrast, production grew for machinery
except electrical (22.8% vs 18.8%), chemicals (11.8% vs 5.1%), fabricated metal products (17.8% vs
25.2%), printing (40.9% vs 41.7%), food manufacturing (2.9% vs 1.4%), beverages (20.0% vs 0.8%). Also,
output rebounded primarily for rubber & plastics (0.7% vs -5.3%).
Top 10 Philippine Imports from All Countries: January 2019 p

(Year-on-Year Growth in Percent)

Gainers

Losers

Cereals and Cereal Preparations

82.5

Iron and Steel

-8.7

Transport Equipment

33.6

Mineral Fuels, Lubricants and Related Materials

-9.9

Miscellaneous Manufactured Articles

15.8

Plastics in Primary and Non-primary Form

11.1

Telecommunication Equipment and Electrical Machinery

7.3
Other Food and Live Animals

5.6

Industrial Machinery and Equipment

4.6

Electronic Products

4.1

p - preliminary

r - revised

The Philippines signed its first bilateral FTA with Japan in 2006 and is presently party to the ASEAN FTA
processes (China, India, Korea, Japan and Australia/New Zealand). The Philippine government has been
trying to get Washington to offer an FTA, while those of New Zealand and Chile are apparently in favour
of a bilateral deal with Manila. The Philippine government wants to join the TPP, and is engaged in
efforts to lay the groundwork for negotiations with the EU for a possible FTA.