The Philippine Economy

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The Economy of the Philippines is the 43rd largest in the world; according to 2011 World Bank statistics and it is also one of the emerging markets in the world; according to the CIA Fact book, the estimated 2011 GDP (purchasing power parity) was 391.1 billion. Goldman Sachs estimates that by the year 2050, it will be the 14th largest economy in the world; Goldman Sachs also included the Philippines in its list of the Next Eleven economies. HSBC projects the Philippine economy to become the 16th largest economy in the world, 5th largest economy in Asia and the largest economy in the South East Asian region by 2050.

Echoing softly across the 7,100 islands that form the Philippines archipelago, the lilting strains of the
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Supplying the U.S. with mainly agricultural and forest products, the Philippines was forced to import most manufactured items from the U.S. Industrial growth virtually grounded to a halt during this period.

Post-independence, the Philippines economy swirled through a dizzying cycle of boom and bust. During the 1950s, the country tried to become an industrialized nation with the policy of import substitution, where domestic goods are substituted for imports. However, these protectionist measures had a negative effect in the long term leading to inefficiencies and misallocation of resources. For that period during the 1970s, however, economic growth spurted. The Philippines is rich in human and natural resources, it seemed then that the Philippines was destined to become one of Asia’s real superpowers. However, the overwhelming power of corruption tainted its leaders, and the Philippines struggled under Marcos’ long rule. By 1981, the nation was heavily in debt, the country was facing problems making payments on its international loans, and poverty was endemic as economic and democratic institutions collapsed. Plunged into a deep recession in the 1980s, the Philippines suffered from what came to be known as crony capitalism, as President Marcos built up a
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