Y_Unite4_Lesson-15-2

The Philippine economy is one of the most dynamic in the East Asia Pacific region. It is rooted in strong consumer demand supported by the employment market and remittances.

In the year 2000 to 2009, the country’s average annual growth was 4.5%. Meanwhile, from 2010 to 2018, it was able to maintain an average annual growth of 6.3%. As a result, the Philippines is bound to make a leap from a lower-middle-income country to an upper-middle-income country.

The Philippine economic growth slowed to 5.5% year-on-year in the first half of the year 2019. Consequently, it was recorded as the lowest in eight years. This is caused by a decrease in investment growth and a weak external environment. The slow growth in investment is considered as the effect of the delayed approval of the 2019 national budget. Meanwhile, private consumption is predicted to increase in 2019 as inflation further decreases.

In 2015, the poverty rate declined by 21.6% from 26.6% in 2006. This proves that the Philippine economy has provided fair opportunities to every section of society. Moreover, the unemployment rate has set a historic low. Meanwhile, despite the rate of underemployment still being high, it has been continuously improving. Although the employment rate increased between 2006 and 2015, a lot of Filipino workers are settling in low-end service work and average wages remain low. Considering all of these, it is necessary to provide better jobs and wages to achieve shared prosperity.