Philippines has a free enterprise economy. Mining and quarrying industry plays a major role in the country’s economic development. The country has large reserves of gold, copper, chromate, nickel, iron and manganese.
(Source: tourism.gov, National Statistics)
Gross Domestic Product (GDP)
The GDP at current prices in 2010 was registered at PHP 8,513 billion, an increase of 10.8% over the previous year. The real GDP growth rate slipped to 1.1% in 2009 and gradually recovered with 7.3% of growth in 2010.
Despite global financial crisis and natural calamity in Philippines, real GDP registered a positive growth rate of 1.1% in 2009. The factors for growth were strong performance from services sector contributing to 43.4% of total GDP, growth of 12.1% and 5.1% recorded in government consumption expenditure and personal consumption expenditure respectively. The various economic reforms adopted since 1990 also led to a positive growth.
(Source: NS1, NS2, NS3, NS4 MIF)

(Source: National Statistics)
The positive foreign trade performance and political elections majorly accounted for 7.3% of real GDP growth rate in 2010. The services sector contributed to 48.4% of total GDP followed by 32.9% of industry sector.
(Source: National Statistics, NS5, NS6)
The per capita GDP amounted to PHP 16,350 in 2010, an increase of 5.3% over the previous year.
(Source: National Statistics)
GDP at PPP
The gross domestic product at PPP is estimated to be USD 370.66 billion in 2011, an increase of 5.8% as compared to last year.
Year
|
Gross domestic product at PPP (USD billion)
|
2010
|
350.28
|
2009
|
324.26
|
2008
|
317.95
|
2007
|
300.07
|
2006
|
272.19
|
2005
|
250.24
|
(Source: IMF)
Gross National Product (GNP)
The Gross National Product in 2010 was PHP 9,750 billion as compared to PHP 8,809 billion in 2009. The GNP exceeded the GDP by PHP 1,237 billion in the year 2010. The annual GNP growth rate increased to 7.2% in 2010 from 4% in 2009.
(Source: National Statistics)

(Source: National Statistics)
The per capita GNP amounted to PHP 18,863 in 2010, an increase of 5.1% as compared to the previous year.
(Source: National Statistics)
Gross National Income (GNI) per capita
The GNI per capita at PPP was registered at USD 4,002 in 2010 as compared to USD 3,429 in 2005.

(Source: UNDP)
Income Tax Rate
The income tax rate for individuals in the country is up to 32% for the year 2010-11.
Taxable Income (PHP)
|
Tax Rate
|
0-10,000
|
5%
|
10,000-30,000
|
10%
|
30,000-70,000
|
15%
|
70,000-140,000
|
20%
|
140,000-250,000
|
25%
|
250,000-500,000
|
30%
|
500,000 and above
|
32%
|
(Source: taxrates.cc)
The corporate tax rate and Value added tax are imposed at 30% and 12% respectively.
Inflation Rate
The inflation rate in 2010 was recorded at 3.8%. (Source: Central Bank)

(Source: National Statistics)
Foreign Direct Investment Inflow
The total net Foreign Direct Investment inflows were USD 1,027 million in 2010 with a year on year decrease of 38% over the year 2009.
Foreign Direct Investment (USD million)
|
Time Period
|
2009
|
2010E
|
Jan
|
393
|
160
|
Feb
|
199
|
325
|
Mar
|
-258
|
71
|
Apr
|
613
|
82
|
May
|
446
|
-34
|
Jun
|
-123
|
128
|
Jul
|
377
|
215
|
Aug
|
10
|
80
|
(Source: Central Bank)
The net foreign direct investment in August 2010 was USD 80 million as compared to USD 10 million in the corresponding period of 2009. This increase in inflow of investments was due to higher earnings of corporate in 2010 Q1 and Q2 and 7.8% and 7.9% of GDP growth in the same period. The equity capital inflows were USD 66 million with major capital coming from US and Japan.
(Source: bsp)
Portfolio Investment
The foreign portfolio investment inflows and outflows amounted to USD 6,335.5 million and USD 5,947.5 million respectively in 2009.
Portfolio Investments (USD million)
|
Time period
|
Inflows
|
Outflows
|
Net
|
Jan 2010
|
576.05
|
405.92
|
170.13
|
Feb 2010
|
500.39
|
361.81
|
138.58
|
Mar 2010
|
579.72
|
503.68
|
76.04
|
Apr 2010
|
1,123.3
|
913.2
|
210.1
|
May 2010
|
767.0
|
589.5
|
177.5
|
Jun 2010
|
809.4
|
895.2
|
-85.8
|
(Source: Central Bank)
Banking sector assets
The total bank assets were PHP 2,703.51 billion in July 2010 as compared to PHP 2439.24 billion over the previous year in the same period.
Banking sector assets, July 2010 (PHP billion)
|
Total Assets
|
2703.51
|
International Reserves
|
2228.46
|
Domestic Securities
|
251.47
|
Loans and Advances
|
122.38
|
Bank Premises and Other Fixed Assets
|
12.47
|
Derivative Instruments in a Gain Position
|
0.91
|
Other Assets
|
87.83
|
(Source: Central Bank)
Capitalisation of Banking Sector
The capitalisation of banking sector was recorded above the global standard of 8% in 2010.
(Source: Central Bank)
Non-Performing Loan Ratio
In November 2010, the non-performing loan ratio of universal and commercial banks was registered at 3.07% as compared to 3.26% over the same period in the previous year.
(Source: Central Bank)

(Source: Central Bank)
Stock Market Capitalisation
The stock market capitalisation for January 2011 amounted to PHP 9,077 billion.
(Source: Central Bank)