THE ECONOMY

OF THE
PHILIPPINES
 A Agriculture

Topic OutlineB SERVICE SECTOR

C THE INDUSTRY SECTOR

AGRICULTURE
 THE PHILIPPINES IS PRIMARILY AN AGRICULTURE-DEPENDENT
COUNTRY; ABOUT ONE-THIRD OF THE LAND AREA OF 30 MILLION
HECTARES (HA) IS CATEGORIZED AS AGRICULTURAL LANDS.

AGRICULTURE HAS CONTRIBUTED ABOUT 20% TO THE COUNTRY'S

GDP (GROSS DOMESTIC PRODUCT), 24% TO TOTAL EXPORT
EARNINGS, AND 46% TO TOTAL EMPLOYMENT IN THE LAST 15
YEARS. ACCORDING TO

THE DEPARTMENT OF AGRICULTURE, THE USE OF QUALITY SEEDS,

FAVORABLE WEATHER CONDITIONS, REHABILITATION OF
IRRIGATION FACILITIES, IMPROVED FERTILIZATION, A REDUCTION
IN PESTS AND DISEASES, INCREASES IN AREA HARVESTED.
 THE IMPORTANCE OF AGRICULTURAL
TECHNOLOGY IN THE PHILIPPINES.

•HIGHER CROP PRODUCTIVITY

• DECREASED USE OF WATER, FERTILIZER, AND
PESTICIDES
• REDUCED IMPACT ON NATURAL ECOSYSTEMS
• INCREASED WORKER SAFETY
AGRICULTURE INCLUDING FORESTRY AND FISHERY PLAYS
AN IMPORTANT ROLE IN THE PHILIPPINE ECONOMY. THE
COUNTRY'S POPULATION IS PREDOMINANTLY RURAL
ABOUT 70% OF THE TOTAL AND TWO-THIRDS OF THIS
POPULATION DEPENDS ON FARMING FOR THEIR
LIVELIHOOD. THOUGH, IN TERMS OF EMPLOYMENT, ABOUT
ONE-HALF OF THE LABOR FORCE IS ENGAGED IN
AGRICULTURAL ACTIVITIES.
 THE MAJOR PHILIPPINES AGRICULTURAL PRODUCTS
ARE SUGARCANE, COCONUTS, RICE, CORN, BANANAS,
PINEAPPLES, AND MANGOES. COCONUT OIL, COCONUT
WATER, FRESH BANANAS, MANGOES, AND
PINEAPPLES. THOUGH, THE UNITED STATES AND JAPAN
ARE AMONG THE TOP DESTINATIONS FOR THE
COUNTRIES AGRICULTURAL EXPORT.
 THE MAJOR CROPS CULTIVATED IN THE PHILIPPINES ARE RICE,
CORN, COCONUT, SUGARCANE, BANANA, CASSAVA, PINEAPPLE, AND
VEGETABLES.

THE MAJOR LIVESTOCK PRODUCTS IN THE PHILIPPINES ARE HOG,

CATTLE, GOAT, AND DAIRY PRODUCTS. CHICKEN AND DUCK ARE
THE LEADING POULTRY PRODUCTS. AMONG THE LEADING SPECIES
ARE TUNA AND TUNA-LIKE VARIETIES, ROUND SCAD, SARDINES,
ANCHOVY, AND SLIP MOUTH
 SERVICE SECTOR
THE SERVICE SECTOR IS A VERY IMPORTANT PART
OF THE PHILIPPINE ECONOMY, AS IT CONTRIBUTES
TO MORE THAN HALF OF THE COUNTRY'S GDP AND
EMPLOYMENT. THE SERVICE SECTOR INCLUDES
VARIOUS ACTIVITIES SUCH AS INFORMATION
TECHNOLOGY, BUSINESS PROCESS OUTSOURCING,
TOURISM, FINANCE, EDUCATION, HEALTH CARE,
AND PUBLIC ADMINISTRATION.
 "IT-BPO"
ONE OF THE MAIN DRIVERS OF THE SERVICE SECTOR
GROWTH IN THE PHILIPPINES IS THE INFORMATION
TECHNOLOGY-BUSINESS PROCESS OUTSOURCING (IT-
BPO) INDUSTRY, WHICH PROVIDES SERVICES SUCH AS
CALL CENTERS, SOFTWARE DEVELOPMENT, ANIMATION,
AND MEDICAL TRANSCRIPTION TO CLIENTS AROUND THE
WORLD. THE IT-BPO INDUSTRY HAS BEEN GROWING
RAPIDLY IN THE PAST DECADE, GENERATING REVENUES
OF $26.3 BILLION IN 2019 AND EMPLOYING 1.3 MILLION
WORKERS¹. THE IT-BPO INDUSTRY HAS ALSO HELPED
CREATE DEMAND FOR OTHER SERVICES SUCH AS
TELECOMMUNICATIONS, TRANSPORTATION, REAL
ESTATE, AND EDUCATION.
 "TOURISM"
ANOTHER KEY CONTRIBUTOR TO THE SERVICE SECTOR
GROWTH IN THE PHILIPPINES IS TOURISM, WHICH
ATTRACTS MILLIONS OF VISITORS EVERY YEAR WHO
SPEND MONEY ON ACCOMMODATION, FOOD,
TRANSPORTATION, ENTERTAINMENT, AND SOUVENIRS.
TOURISM ALSO CREATES JOBS FOR LOCAL PEOPLE WHO
WORK IN HOTELS, RESTAURANTS, TRAVEL AGENCIES,
AND OTHER TOURISM-RELATED BUSINESSES. IN 2019,
TOURISM ACCOUNTED FOR 12.7% OF THE GDP AND 13.5%
OF THE TOTAL EMPLOYMENT². TOURISM ALSO HAS
POSITIVE SPILLOVER EFFECTS ON OTHER SECTORS SUCH
AS AGRICULTURE, MANUFACTURING, AND
CONSTRUCTION.
 "OVERSEAS WORKERS"
A THIRD FACTOR THAT SUPPORTS THE SERVICE SECTOR GROWTH IN
THE PHILIPPINES IS THE OVERSEAS WORKERS AND THE PHILIPPINE
DIASPORA, WHO SEND REMITTANCES TO THEIR FAMILIES AND
INVEST IN THEIR HOME COUNTRY. REMITTANCES ARE A MAJOR
SOURCE OF INCOME FOR MANY FILIPINO HOUSEHOLDS, ESPECIALLY
THOSE IN RURAL AREAS. REMITTANCES ALSO STIMULATE
CONSUMPTION AND INVESTMENT IN VARIOUS SERVICES SUCH AS
EDUCATION, HEALTH CARE, FINANCE, AND RETAIL. IN 2019,
REMITTANCES REACHED $33.5 BILLION, EQUIVALENT TO 9.3% OF THE
GDP³. THE PHILIPPINE DIASPORA ALSO CONTRIBUTES TO THE
SERVICE SECTOR BY SHARING THEIR SKILLS, KNOWLEDGE, AND
NETWORKS WITH THEIR COMPATRIOTS.
 THE INDUSTRY SECTOR
THE INDUSTRY SECTOR IS ONE OF THE THREE MAIN
ECONOMIC SECTORS IN THE PHILIPPINES, ALONG WITH
AGRICULTURE AND SERVICES. IT CONSISTS OF
VARIOUS SUBSECTORS, SUCH AS MANUFACTURING,
CONSTRUCTION, MINING, ELECTRICITY, GAS, WATER,
AND WASTE MANAGEMENT. THE INDUSTRY SECTOR
CONTRIBUTES TO THE PHILIPPINE ECONOMY BY
PROVIDING JOBS, INCOME, EXPORTS, AND
INVESTMENTS.
 THE INDUSTRY SECTOR IS A MAJOR SOURCE OF EMPLOYMENT IN
THE PHILIPPINES, ESPECIALLY FOR THE URBAN POPULATION.
ACCORDING TO THE PHILIPPINE STATISTICS AUTHORITY (PSA), THE
INDUSTRY SECTOR EMPLOYED ABOUT 7.4 MILLION PEOPLE OR 18.5%
OF THE TOTAL EMPLOYED PERSONS IN APRIL 2021. THE
MANUFACTURING SUBSECTOR ALONE EMPLOYED ABOUT 3.4
MILLION PEOPLE OR 8.6% OF THE TOTAL EMPLOYED PERSONS IN
APRIL 2021.
THE INDUSTRY SECTOR IS ALSO A CATALYST FOR INNOVATION AND
TECHNOLOGICAL DEVELOPMENT IN THE PHILIPPINES. THE
INDUSTRY SECTOR SUPPORTS THE ADOPTION OF NEW DIGITAL AND
AUTOMATED TECHNOLOGIES THAT ENHANCE PRODUCTION
PROCESSES AND SERVICE DELIVERY, SUCH AS ARTIFICIAL
INTELLIGENCE, ROBOTICS, INTERNET OF THINGS, BIG DATA, AND
CLOUD COMPUTING. THESE TECHNOLOGIES CAN HELP IMPROVE
PRODUCTIVITY, QUALITY, EFFICIENCY, AND COMPETITIVENESS OF
THE PHILIPPINE INDUSTRIES IN THE GLOBAL MARKET.
 THE INDUSTRY SECTOR ALSO HAS LINKAGES
AND SPILLOVER EFFECTS TO OTHER SECTORS
OF THE ECONOMY, SUCH AS AGRICULTURE AND
SERVICES. THE INDUSTRY SECTOR PROVIDES
INPUTS AND OUTPUTS TO OTHER SECTORS,
CREATING VALUE-ADDED AND MULTIPLIER
EFFECTS.
 FOR EXAMPLE,
THE FOOD MANUFACTURING SUBSECTOR USES
AGRICULTURAL PRODUCTS AS RAW MATERIALS AND
PRODUCES PROCESSED FOOD PRODUCTS THAT ARE
CONSUMED BY HOUSEHOLDS OR EXPORTED TO OTHER
COUNTRIES. THE CONSTRUCTION SUBSECTOR USES
CEMENT, STEEL, AND OTHER MATERIALS FROM OTHER
INDUSTRIES AND BUILDS INFRASTRUCTURE AND
FACILITIES THAT SUPPORT ECONOMIC ACTIVITIES AND
SOCIAL SERVICES.
Thank you for listening!