Philippines Economy Full Detailed Video: [ Ссылка ]


This is the Philippines. A country with increasing urbanization, a growing middle class, and a large young population.
Usually countries achieve their economic growth by slowly transitioning from agriculture to industry, and to the service sector. Yet for Philippines this transition was very fast. The service sector of the Philippines overtook the industrial sector in terms GDP contribution during the early 80s. And increased from 36% in 1980 to 60% today. The services sector today employs 56% of the country's workforce, which is more than the agricultural, and industrial sectors combined. The main reason behind the growth of service sector is that, the Philippines was a former US territory. And the US had a very strong cultural impact on Philippines. More than 90% of the people in the country speak English as their 2nd language. The cultural similarities gave them the opportunity to become the most popular business process outsourcing country. Plus other back office jobs are very well done here. And all of this for significantly low pay than the western countries.
Another source that brings a big chunk income is remittance. The remittance accounts for more than 9% of the Philippines GDP. This makes them the 4th largest in terms of remittance. This is a result of their good education system which is suitable for many foreign countries.
Now If you look at the industrial sector, it still holds 30% share in the country's GDP. And employs 18% of the country's workforce. This seems considerably low, and the reason behind this lies in the geography of Philippines. You see, the country is spread over 7000 islands. This makes transportation very difficult. This also limits land for development, and it explain why the Manila the capital of Philippines is one of the densest city in the world. Other problems include high energy prices, poor infrastructure, low FDI, and lack of ease of doing business.
So this was a glimpse of the Philippines economy. To know more watch our full detailed video linked in the description above.

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