Per Capita Income: The per capita income of a certain country is the GDP of that country divided by the total population. In the Philippines the per capita income is approximately $700. When compared to the per capita income of the United States, which is about $22,000, it is easy to tell that the economy of the Philippines is very, very poor.
% FROM AGRICULTURE: 17.1 (important because you would think that since they mainly produce agricultural products that its percentage would be the highest)
% FROM SERVICES: 39.2 (also important because you wouldnt think that this one would be the highest)
Exports: Traditionally, the Philippines have been primarily an exporter of raw materials and an importer of manufactured goods. This is the role that many third world countries play in the global economy. Electronic and automotive parts, along with garments are the leading merchandise exports of the country. However, the Philippines also rely heavily on import inputs. The country also exports bananas, coconuts, copper, gold, lumber, pineapples and sugar.
Imports: The Philippines mostly imports manufactured goods. Certain items remain subject to import regulations such as narcotic drugs, firearms, ammunition, etc. Their chief imports include chemicals, machinery, and petroleum.
Trading Partners: The Philippines, like any other country, cannot produce everything that it needs. Instead, it relies heavily on foreign trade. Specialization in production allows for each nation to produce what it produces best, and to trade for products, which it cannot produce as well. This means that if you are better at one thing and I am better at another, rather than each of us trying to do both, we would each do what we are best at. Then, we would exchange what we had produced and both be better off than had we tried making both things on our own. It trades mainly with Japan and the United States. The Philippines maintain high tariff rates and protective barriers on sensitive agricultural products.
Major Economic Activities: The Philippines has embarked on economic reforms and market liberalization measures in the past two years. As a result of this the Philippines has started to show signs of recovery since the era of Ferdinand Marcos. Even though the unemployment rate is very high, it has dropped from 10.5% to 9.8%, a considerable move for a two-year period. In the Philippines, the minimum age for employment is 15. Their constitution prohibits forced labor. All workers have the right to join unions. The prices are generally determined by free market forces, with only a few exceptions.
Conclusion: Although the Philippines economy is weak, and the unemployment rate is high, the Philippines are showing some signs of improvement. It has recently become a more open economy, allowing for more free trade and free market forces. As this process continues, trade with the Philippines will increase, and eventually, a more capitalistic and a successful economy will emerge.