Economic Structure

Economic Structure

The Philippine economy has the typical for many developing countries dichotomy: Modern electronics industry and booming service sector on the one hand, poverty and Subsistenzlandwirtschaftandererseits.
Agriculture still employs about a third of all workers, their share in national product amounts to only about 15%. Due to the high proportion of subsistence farming, the productivity of the agricultural sector is low. The industry contributes approximately one third to the emergence of the national product. An important pillar is the electronics industry. The assembling in the field of semiconductors and electronic components made in recent years from about two-thirds of Philippine exports. After a sharp downturn in 2009 due to world economic crisis of the sector since 2010 is back on a clear growth path. Other growth sectors include construction, food and beverage industry as well as the entire area of ​​infrastructure. The mining sector is positive and could gain even more importance in the future, and the Philippines have large deposits of gold, copper and nickel.
The service sector has grown in recent years, the cornerstone of the Philippine economy and contributes to about half today the formation of the gross national product. One of the strongest sectors is telecommunications. Manila boasts the "world capital of the SMS-sending" to be. The Philippines is now also the world's second largest outsourcing destination (call centers, business process outsourcing) to India. Currently expected to total around 530,000 people will be employed in this sector. In the coming years is expected to continue double-digit growth rates.
Also offers a great potential of tourism. The number of tourists coming into the country in 2010 was 3.5 million but below expectations. For the future, but the outlook is quite positive.
The direct impact on the economy of the state is limited. The largely completed privatization of energy sector public enterprises play in this area hardly a role there, however extensive restrictions on foreign investors (no title to land; possible in many areas only a minority stake of up to 40%), corruption and lack of transparency in tendering procedures in public contracts have significantly impacted in recent years, the business climate for foreign investors.
The tax rate (proportion of taxes in GDP) despite a rise in VAT in 2006 is still only around 13%. This is in comparison to neighboring countries, mainly due to low number of low efficiency in tax collection.