THE PHILIPPINE ECONOMY

1. The Philippines is one of the most dynamic economies in the East Asia Pacific Region. A growing middle
class, and a large population, the Philippines’ economic dynamism is rooted in strong consumer demand
supported by a vibrant labor market and robust remittances. (worldbank.org)
2. The Philippines has a mixed economic system which includes a variety of private freedom, combined with
a centralized economic planning and government regulation. (globaledge.msu.edu)
3. The economy of the Philippines is the world’s 33rd largest economy by nominal GDP according to the 2019
estimate of the World Bank statistics. (Wikipedia)
4. GDP 330.9 billion USD for 2018, GDP Growth rate 6.2 annual change, Gross National Income 1.145
trillion (World bank)
5. Real economic growth slowed in 2019 but still strong with a 6.0 annual change. (World Bank)
6. Exchange and trade policies are the economic policies in the Philippines (import and exporting)
7. Economic indicators for the Philippines:
a. The Philippines’ GDP is expected to contract by 7.3% in 2020 and grow by 6.5% in 2021
b. Philippine Inflation rates forecasted at 2.4% in 2020 and 2.6% in 2021
Source: Asian Development Bank

Points to Remember:
1. GDP per capita stands for Gross Domestic Product (GDP) per capita (per person). A metric that breaks down
a country’s economic output per person and is calculating by dividing the GDP ( ) of a country by its
population.

GDP per capita measures the average level of national income per person and GDP measures the national
income of an economy (volume of goods produced in a given year. (economicshelp.org)
2. Inflation refers to an overall increase in the Consumer Price Index (CPI), which is a weighted average of prices
for different goods. Some goods might record a drop in prices, whereas others may increase, thus the overall
value of the CPI will depend on the weight of each of the goods with respect to the whole basket. Annual
inflation, refers to the percent change of the CPI compared to the same month of the previous year.

3. trade balance (the difference between the total value of exports of goods and services and the total value of
imports of goods and services) https://www.adb.org/countries/philippines/economy https://www.focus-
economics.com/countries/philippines

THE WORLD ECONOMY

1. The world economy or global economy is the economy of all humans of the world, considered as the
international exchange of goods and services that is expressed in monetary units of account.
(Wikipedia)
2. Refers to the interconnected worldwide economic activities that take place between multiple countries.

How does global economy affect us? Benefits of global economy:

1. Increased capital flows.
2. The growth of multinational companies.
3. Increased integration of global trade cycle.
4. Increased communication and improved transport.
5. Effectively reducing barriers between countries.

Negative Effect of globalization:

1. Terrorism
2. Job insecurity
3. Currency fluctuation
4. Price instability