What it Takes to be a Successful Entrepreneur in the Philippines

For a developing country such as the Philippines, entrepreneurial activities play an important role in providing alternative sources of income. As of 2012, there were 940,886 registered micro, small, and medium enterprises (MSMEs) in the Philippines (99.6% of the total establishments), majority of which are in the retail and wholesale industry. The Global Entrepreneurship Monitor (GEM) 2014 survey also reflects that most of the types of businesses are in the retail industry, particularly retail sales of food and beverage items and other basic essentials. This is reflected in the vast number of sari-sari stores or retail stores and food stalls in the country. One of the reasons behind their popularity as a start-up business is the small capital required to start the business and the accessibility because it could be set-up at home

Monitoring the Philippine Economy Year-End Report for 2013

Philippine economic growth for the year 2013 exceeded expectations – posting a 7.2 growth despite devastation brought about by the Zamboanga crisis and natural calamities. Economic performance: Upward trend in the demand side was driven by consumer spending and domestic investment; on the other hand, the main growth factor for the supply side was the services sector

Monitoring the Philippine Economy Year-End Report for 2015

The Philippine economy expanded by 5.9 percent for the year 2015, fortifying its status as one of the best economic performers in the region despite the difficult external environment and the onset of El Nino

Monitoring the Philippine Economy Year-End Report for 2016

Philippine economic growth topped regional performance for 2016. In line with election-year market expectations, annual growth accelerated to 6.9 percent from 6.0 percent in 2015, surpassing China (6.7%) and Vietnam (6.2%). Despite the global economic slowdown, Philippine growth has continuously improved since 2015, showing resilience to external shocks with manufacturing expansion. On the demand side, household consumption and investments flourished with modest inflation and strong imports. On the supply side, the industry sector led as the service sector slowed down. Meanwhile, the agriculture sector continues to contract with the onslaught of weather disruptions like typhoons Karen and Lawin

Monitoring the Philippine Economy Year-End Report for 2017

Growing at 6.7% in 2017, the Philippine economy realized robust full-year forecasts despite domestic and international economic challenges. Economic performance: Aggressive government spending on infrastructure projects, the growth of the manufacturing sector, and an uptick in the agriculture sector strengthen the Philippine economy

Monitoring the Philippine Economy Year-End Report for 2014

Despite doubts over growth prospects and challenges in the external market, the Philippine economy attained a solid 6.1 percent growth in 2014

Assessing the Impacts of Cash, Food, and Non-Food Grants on Poverty Alleviation in the Philippines

The incidence of hunger in the country gave rise to government mitigation projects. One such endeavor is the Food-for-School Program (FSP). Its major goals are to help feed the poorest families in the Philippines, help them cope up with increasing prices of food and fuel, and provide education to children. Through this program, the government provides a kilo of rice to families suffering from severe hunger. Furthermore, FSP beneficiary families that ensure the regular attendance of their children in the various Department of Education (DepEd) educational institutions are entitled to a free kilo of rice from the National Food Authority for each of the 13 days covered by the program (Ordinario, 2009)

Industry Career Guide: Manufacturing

Manufacturing sector in the Philippines has one of the largest contributions to the growth of the economy. Throughout the years, starting from the 1970s, the manufacturing sector has been one of the driving forces behind the country’s growth. It has proven its importance in the economy because of benefits such as employment generation and technological innovation

Monitoring the Philippine Economy Fourth Quarter Report for 2022

The Philippine economy grew 7.2 percent, featuring robust growth despite facing domestic challenges. Fourth quarter growth reflected a more optimistic consumer sentiment as the economy continued to open up. Economic growth in Q4 2022 was 7.2 percent year-on-year and 17.1 percent quarter-on-quarter (q-o-q), showing the Philippines’ consistent effort to create a positive growth outlook for the economy (see Table 1). Year-on-year growth exceeded the median analyst forecast of 6.8 percent despite accelerating inflation and growing food security issues. Revenge spending continues to drive consumption on the demand side while service sector growth remains headstrong on the supply side amid stunted growth in the industry and agriculture sectors. Meanwhile, an expected reversal to a balance-of-payments surplus at December-end was fueled by remittances and tourism receipts during the holiday season. The trade deficit narrowed as well in Q4-end, with prospects for trade looking bright with the Senate’s eventual ratification of the Regional Comprehensive Economic Partnership in the next quarter. Looking ahead, the central bank and national government must continue to determine the effective mix of policies and straighten out its priorities to support the economy\u27s recovery

Monitoring the Philippine Economy State of the Economy Report

The Philippine economy recovered from the COVID-19 pandemic during 2022. It posted a very high annual growth rate, 7.6%, although this must be understood in the context of a low base. AKI’s State of the Economy Report focuses on three issues in the context of the new Administration’s 8-Point Socioeconomic Agenda and the Philippine Development Plan 2023-2028: growth, inflation, and the fiscal deficit and national debt. Overall, we have a positive view of the economy over the medium and long-term. However, we argue that: -The focus of economic policy has to shift decisively toward changing the structure of the economy by reducing the share of employment in agriculture and increasing exports of more complex products. Otherwise, it will be very difficult to attain (and even more so, maintain) an annual growth rate of 6.5-8% during 2024-2028, as targeted by the administration. -The Russia-Ukraine war price hike has been exacerbated by low productivity growth and an inefficient distribution system. Prices increased significantly within the Food and Housing groups. Nevertheless, the overall price increase (5.8% in 2022 and 8.3% in the first quarter of 2023) was not as dramatic as it has often been portrayed and treated. Interest rate increases will not do the job because this is not a case of excessive demand. -The government does not have full control of the fiscal outcome. Hence, targeting a 3% fiscal deficit by 2028 is an erroneous goal. The fiscal deficit outcome is mostly residual and depends on the saving preferences of the private sector. If the latter decideds to net save, the government wil have to run a fiscal deficit. Likewise, the reduction in national debt to about 50% of GDP by 2028 is also an unclear goal as most of it is domestic currency, and interest rate payments are income for the private sector. Debt issuance is a tool to maintain interest rates within the corridor set by BSP. The government of the Philippines will not default on debt issued in its own currency unless it voluntarily chooses to do so. -The administration ought to recalibrate some objetives of its economic program