Philippines Industry Sectors

Philippines has an advanced developed economy, with a GDP(PPP) of US$188.719 billion in 2010. It is currently the 32nd largest economy in the world. As a newly industrialized economy, the Philippines economy still has a large agriculture, but is swiftly dominated by manufacturing and services.

Philippines has an advanced developed economy, with a GDP(PPP) of US$188.719 billion in 2010. It is currently the 32nd largest economy in the world. As a newly industrialized economy, the Philippines economy still has a large agriculture, but is swiftly dominated by manufacturing and services.

Philippines is also rich in mineral and natural resources. It is considered one of the largest mining countries, with an estimated $1 trillion in mineral wealth. Philippines’ rich mineral deposits includes metals like gold, nickel, copper and chromite and non-metals like asbestos, asphalt, sulfur and marble. However, the mining industry is facing a decline due to low metal prices, high production costs and change in mining laws.

Philippines’ Industry Sectors

Philippines’ agriculture contributes 13.9 percent of the country’s total GDP in 2010. The country also tops the exports of abaca, bananas, carrageenan, copra (and other coconut products) and pineapples in the region. Philippines is also one of the the world’s largest exporter of rice, which make up 2.8 percent of global rice production. Currently, Philippines is the host of the International Rice Research Institute, whose aim is to improve the well-being of poor rice farmers, the consumers, as well as the environment.

Over the years, the agriculture in Philippines is facing a decline in productivity. Although the industry employs about 33 percent of the total workforce, it  contributes less than a fifth of the nation’s GDP. Reasons cited for the decline includes inadequate infrastructure and long seasons of droughts.

In 2010, industry was responsible for 31.3 percent of Philippines’ GDP. Major industries include automotive, electronics, textiles, and food processing. Industry also employs 15 percent of the total workforce.

Philippines is the home to many major car manufacturers, such as Mercedes-Benz, BMW, Volvo, Ford, Toyota, Mitsubishi and Nissan, with Toyota the biggest seller of vehicles in the country. The automotive market in Philippines saw a 14-year decline in sales until 2010, when demand rises and set a new record high of 162,000 cars sold that year.

Electronics also played a huge role in Philippines industry. Major electronics manufactures like Intel and Texas Instruments have established their operations in the country for over two decades. Electronics in Philippines produce 10 percent of the world’s supply of semiconductor manufacturing services and 50 percent of the world’s production of HD TVs.

Philippines is also a leading export market for textiles, along with the US, Japan, Great Britain, Germany and Canada. Textiles exports contributes 4.93 percent of the country’s total exports volume. Philippines’ availability to textile resources such as natural fiber and natural dye, combined with a skilled and creative labour force allows the country to stay competitive in the world’s textile market.

Services in Philippines contributes 54.8 percent of the country’s total GDP, and is estimated to grow further as part of its economic development plan. In 2010, it employs 52 percent of the total workforce.

Business process outsourcing(BPO) is the biggest driving factor behind Philippines’ growing services. As of 2010, Philippines has overtaken India as the world leader in business support functions, according to a IBM Global Location Trends Annual Report. The country’s BPO market makes up 15 percent of the world’s outsourcing market. BPO has contributed US$6 billion in revenues for the Philippines economy in 2008, US$7.2 billion in 2009, and US$9 billion in 2010. Currently, there are about 525,000 workers in the BPO market.