International Market Development

International market development | Comprehensive analysis of Philippines' economy and market conditions

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Author : Bozhou Marine
Update time : 2021-01-13 14:14:22


In this article, we mainly introduce the basic situation of the Philippines market. Including: geographic location, major cities, population conditions, ethnic groups, major festivals, natural resources, major industries, infrastructure, GDP, foreign exchange reserves, employment, prices, taxes, etc.
 
 

  Introduction

 
The Republic of the Philippines (Philippines), located in the Western Pacific, is a multi-ethnic archipelago country in Southeast Asia, covering an area of ​​299,700 square kilometers.
 
The Philippines is a member of ASEAN and a member of Asia-Pacific Economic Cooperation (APEC). The Philippines is a developing country, newly industrialized country and one of the world's emerging markets, but the gap between rich and poor is huge. Since independence, the Philippines has experienced rapid economic growth several times. However, the political situation is often turbulent, the government is corrupt, and social instability has become a major factor hindering its development.
 
 

  Capital
 
Manila is the capital of the Philippines. It is located in the southwestern part of Luzon Island and bordered by the natural harbour of Manila Bay. The area includes 17 cities and towns including Manila, Makati, Calogan, Quezon and Pasay. With an area of ​​636 square kilometers and a total population of 12,877,253 people in the National Capital Region (data from the Philippine Census on August 1, 2015), it is one of the largest cities in Southeast Asia.
 
 

  Main City
 
1. Manila
 
The capital and largest city of the Philippines is one of the largest cities in the world and one of the most international cities in the world. It is also one of the most diverse cities in the world. It is a world-renowned international metropolis. Called "Asia's New York".
 
Manila, the capital city and the largest port of the Philippines, is located on the east coast of Manila Bay, Luzon, the largest island in the Philippines. It is also called "Little Luzon" and is close to the natural fine harbor-Manila Bay. Manila was built on the banks of the Pasig River.
 
The river divides the city into two parts. Of the 14 districts, 7 districts are on the north bank of the Pasig River, 6 districts are on the south bank, and one district is divided into two parts. 6 bridges on the river connect the north and south parts of the city. The population of Manila It is 1,780,148 (Philippines Census on August 1, 2015). In November 1976, the Philippine government decided to combine 17 cities and towns including Manila, Quezon, Caloocan, Pasay and Makati into Metro Manila, the national capital region, with an area of ​​638.55 square meters. Kilometers, with a population of 12,877,253 people (the Philippine Census of August 1, 2015). It is one of the largest metropolitan areas in Asia and is known as the "New York of Asia".



Manila - Photo | Google

2. Cebu
 
Also translated as Cebu, it is the second largest city in the Philippines, second only to Manila, and is also the main port and economic center of the Philippines.
 
Cebu is the first city developed in the Philippines and is known as the "Queen city of the South". In 1521, the Portuguese navigator Magellan sailed from Spain to Central and South America and was pleasantly surprised to discover this beautiful and quiet island. Cebu is located in the center of the Visayas archipelago. The state has a population of 1.8 million and consists of 167 islands. It is the second largest link between the Philippines and the world. Surrounded by a fishing village surrounded by Philippine Islands and scattered with palms, Cebu is the central island of the Visayan Islands.
 
Cebu City is located on the north shore of Cebu Island, and is the city with the longest history even less than the capital, Manila. Due to its location in the central part of the Philippines, Cebu City is the Philippines' main international flight center and the most important commercial, trade and industrial center in Visayas and Mindanao. It is also known as the "Queens City of the South".
 
Cebu is a highly developed commercial and industrial center, and the largest economic center of the Philippines except Manila. Cebu also has the largest copper mine in Southeast Asia.



Cebu- Photo | Google

3. Davao
 
Also translated as "Na Mao", it is the third largest city in the Philippines, the largest city and port in southern Philippines, and an important economic center of the Philippines.
 
Davao is the largest port and economic center of Mindanao in the southern Philippines and a national abaca processing center. Located on the west bank of Davao Bay in the southeast of Mindanao, at the mouth of the Davao River. The population is about 700,000. The terrain is flat, the annual average temperature is 26.9℃, and the annual precipitation is 2290 mm, 60% of which is concentrated in May to October.
 
 
 

  Jet Lag
 
There is no time difference between Beijing and the Philippines.
 
 

  Population and Ethnicity
 
About 108 million. Malays account for more than 85% of the country’s population. Others include Tagalogs, Ilo, Pangbang, Visayas, and Bikors; ethnic minorities and foreign descendants include Chinese, Arabs, Indians, Spaniards and Americans; there are a few natives.
 
 

  Language
 
There are more than 70 languages. The national language is Tagalog-based Filipino, and English is the official language.
 
 

  Main Holiday
 
Independence Day (National Day): June 12;
Bataan Day (commemorating the soldiers who died in World War II): April 9;
Heroes' Day (commemorating the martyrdom of National Father Rizal): December 30;
Major Christian holidays (such as Christmas, etc.).

 

  Natural Resources
 
There are mainly more than 20 types of mineral deposits including copper, gold, silver, iron, chromium, and nickel. Copper reserves are about 4.8 billion tons, nickel is 1.09 billion tons, and gold is 136 million tons. Geothermal resources are estimated to have 2.09 billion barrels of crude oil standard energy. There are about 350 million barrels of oil reserves in the northwestern part of Palawan Island.
 
 

  Competitive Industries

 
Industry
 
The industrial output value in 2016 was USD 93.988 billion, a year-on-year increase of 8.5%. Among them, the output value of mining, manufacturing, construction, and power energy was US$2.407 billion, US$59.893 billion, US$22.098 billion, and US$9.59 billion, accounting for 0.7%, 16.3%, 6%, and 2.6% of GDP, respectively.
 

Agriculture, Forestry and Fishery
 
In 2016, the output value of agriculture, forestry and fishery was 29.423 billion US dollars, accounting for 8.0% of GDP. Among them, the output value of agriculture and forestry is USD 25.533 billion, accounting for 7% of GDP; the output value of fishery is USD 3.89 billion, accounting for 1% of GDP. The main export products are: coconut oil, bananas, fish and shrimp, sugar and sugar products, coconut shreds, pineapple and pineapple juice, unprocessed tobacco, natural rubber, coconut meal and seaweed.
 
The forest area is 15.79 million hectares, with a coverage rate of 53%. There are precious woods such as ebony and sandalwood.
 
Rich in aquatic resources, there are more than 2,400 fish species, and tuna resources are among the top in the world. The developed seawater and freshwater fishing grounds cover an area of ​​2,080 square kilometers.
 

Service Industry
 
The output value of the service industry in 2016 was approximately 7.85 trillion pesos, an increase of 8.1% over the previous year. It accounts for 59.1% of GDP. The Philippines is one of the major labor exporting countries in the world, with more than 10 million laborers working overseas. In 2016, the remittances of overseas workers from the Philippines reached US$26.9 billion, a year-on-year increase of 5% and accounting for 7.3% of GDP.
 

Tourism Industry
 
One of the important sources of foreign exchange income. The main tourist spots are: Baisheng Beach, Blue Harbor, Baguio City, Mayon Volcano, the original terraces of Ifugao Province, etc.



Tourism in Philippines - Photo | Google
 
  Infrastructure
 
Mainly by road and sea. The railway is underdeveloped and concentrated in Luzon. Air transportation is mainly operated by shipping companies such as Philippine Airlines, and there are flights between major islands across the country.
 
Railway: 1,200 kilometers in total length.
 
Highway: The total length is about 216,000 kilometers. Passenger volume accounts for 90% of the total national transportation volume, and freight volume accounts for 65% of the national transportation volume.
 
Water transportation: 3219 kilometers in total length. There are hundreds of large and small ports and more than 1,000 merchant ships in the country. The main ports are Manila, Cebu, Iloilo, Zamboanga, etc.
 
Air transportation: 203 airports of various types. Domestic routes cover more than 40 cities, and international shipping agreements have been signed with more than 30 countries. The main airports are Ninoy Aquino International Airport in the capital, Manila, Mactan International Airport in Cebu City, and Davao Airport.
 
 

  The economy hit the lowest growth rate since 2011
 
The Philippines completed a nominal GDP of 18.61 trillion pesos, or 359.3 billion U.S. dollars at the average exchange rate, which is approximately 2478.98 billion yuan (per capita GDP exceeds 3,300 U.S. dollars). The GDP of the Philippines in 2019 is exactly between China's Liaoning Province and Jiangxi Province.
 
The actual economic growth rate for the whole year of 2019 was 5.9%, which did not meet the expected target and was the lowest growth rate since 2011.



Philippine GDP growth rate trend graph over the years | TRADING ECONOMICS
 
Philippine Central Bank Governor Diokno: Supported by fundamentals and market-driven, the Philippine peso is trending strongly. The GDP of the Philippines may shrink by 7%-9% in 2020. The Philippines' GDP may grow by 6.5%-7.5% from 2021 to 2022.
 
 

  Foreign exchange reserves hit a record high
 


The Philippines' foreign exchange reserves trend over the years | TRADING ECONOMICS
 
As of the end of September 2020, the Philippines’ foreign exchange reserves reached US$100.49 billion, an increase of 17.4% over the same period in 2019 and a record high. The Philippine’s abundant foreign reserves help withstand market fluctuations and pay off debts when the economy is down. The amount is equivalent to 9.2 times the Philippine’s short-term foreign debt, which is enough to pay the Philippines’ imports for 10 months.
 
 

  Record unemployment rate
 


Philippine unemployment rate trend graph over the years | TRADING ECONOMICS
 
On August 16, 2020, the Philippine independent social survey agency, the Social Weather Station, released a new survey report. The report showed that the unemployment rate in the Philippines reached 45.5%, a record.
 
According to the Social Weather Station, as of July 2020, there are approximately 60 million laborers in the Philippines, of which the unemployed are estimated to be 27.3 million. In December 2019, there were approximately 45.5 million laborers and 7.9 million unemployed. The survey also showed that 50% of the respondents were unemployed during the new crown epidemic.
 
 

  Prices are rising rapidly, inflation rate remains low
 


Philippines Consumer Price Index CPI Trend Chart | TRADING ECONOMICS
 


Philippine inflation rate trend chart over the years | TRADING ECONOMICS
 
Central Bank of the Philippines: The average inflation rate in the Philippines in 2020 is 2.2% and 2.4% in 2021.
 
 

  Corporate income tax rate 30%
 


Philippine corporate income tax trends over the years | TRADING ECONOMICS
 
In 2020, the Philippine corporate income tax rate is 30%.
 
 

  Personal income tax rate 35%
 


Philippine corporate income tax trends over the years | TRADING ECONOMICS
 
In 2020, the personal income tax rate in the Philippines is 35%.



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