Polytechnic University of the Philippines

Sta. Mesa, Manila

Submitted by:
Abando, Erica dlR.
Angeles, Jireh Nesamiel L.
Escurel, Karl Edison C.
Guevarra, Jeen Nara E.

Dr. Aileen L. Camba

Professor

ECONOMIC GROWTH

Analysis of Economic Growth

The Gross Domestic Product (GDP) in Philippines was worth 250.27 billion US dollars
in 2012. The GDP value of Philippines represents 0.40 percent of the world economy.
GDP in Philippines is reported by the The World Bank. Philippines GDP averaged 56.12
USD Billion from 1960 until 2012, reaching an all time high of 250.27 USD Billion in
December of 2012 and a record low of 4.40 USD Billion in December of 1962. The
gross domestic product (GDP) measures of national income and output for a given
country's economy. The gross domestic product (GDP) is equal to the total expenditures
for all final goods and services produced within the country in a stipulated period of
time.
Gross National Product in Philippines increased to 1960213 PHP Million in the first
quarter of 2013 from 1922870 PHP Million in the fourth quarter of 2012. Gross National
Product in Philippines is reported by the National Statistics Coordination Board of
Philippines. Philippines Gross National Product averaged 1438233.95 PHP Million from
1998 until 2013, reaching an all time high of 2080585.00 PHP Million in August of 2012
and a record low of 939555.00 PHP Million in May of 1998.

EMPLOYMENT
Household Population, 15 Years Old and Over and Employed Person
(In Thousands)
INDICATOR
2011
2012
2013
Household Population
15 Years Old and Over
61,882
63,253
64,028
Labor Force
40,006
40,431
40,905
Employed
37,192
37,668
37,819
Employment Rate
93%
93.20%
92.50%

Source: http://tradingeconomics.com/philippines/gdp
http://tradingeconomics.com/philippines/gnp

Full Employment

Household Population 15 Years Old and Over, and Employed Status by Sex
(In Thousands)
INDICATOR
2011
2012
2013
MEN
Household Population
15 Years Old and Over
30,805
31,528
31,870
Labor Force
24,345
24,677
24,995

Employed
Employment Rate

22,573
92.70%

22,962
93.10%

23,100
92.40%

WOMEN
15 Years Old and Over
Labor Force
Employed
Employment Rate

2011
31,076
15,660
14,619
93.40%

2012
31,726
15,754
14,706
93.30%

2013
32,158
15,911
14,719
92.50%

Employment Rate by Highest Grade Completed

(In Thousands)
INDICATOR
2011
2012
TOTAL
37,192 Percentag 37,555 Percentag N
e
e
A
No Grade
616
1.66%
620
1.65%
N
Completed
A
Elementary
11,177
30.05%
11,258
29.98%
N
Graduates and
A
Undergraduates
High School
14,818
39.84%
15,038
40.04%
N
Graduates and
A
Undergraduates
Post Secondary
1,620
4.31%
N
Graduates and
A
Undergraduates
College Graduates 10,582
28.45%
9,019
24.02%
N
and
A
Undergraduates

INDICATOR
ALL AGE GROUP
15-24 Years
25-34 Years
35-44 Years
45-54 Years
55-64 Years
65 Years and Over

37,192
7,258
9,771
8,484
6,574
3,599
1,506

Employment Rate by Age Group

(In Thousands)
2011
2012
Percentage
37,668 Percentage
19.51%
7,364
19.55%
26.27%
9,919
26.33%
22.81%
8,625
22.90%
17.68%
6,665
17.69%
9.68%
3,601
9.56%
4.05%
1,493
3.96%

2013
Percentage
NA
NA

NA

NA

NA

37,819
7,465
10,006
8,645
6,659
3,587
1,457

2013
Percentage
19.74%
26.46%
22.86%
17.61%
9.48%
3.85%

Employment Rate by Region

Indicator
2011
NCR
88.70%
CAR
95.10%
Region I- Ilocos Region
91.50%
Region II- Cagayan Valley
97.10%
Region III- Central Luzon
91.50%
Region IV-A - CALABARZON
90.30%
Region IV-B - MIMAROPA
96.10%
Region V- Bicol Region
93.90%
Region VI- Western Visayas
93.30%
Region VII- Central Visayas
93.30%
Region VIII- Eastern Visayas
94.80%
Region IX- Zamboanga Peninsula
96.70%
Region X- Northern Mindanao
95.50%
Region XI- Davao Region
94.60%
Region XII- SOCCSKSARGEN
96.20%
CARAGA
94%
ARMM
96.50%

INDICATOR
Both Sexes
Men
Women

Employed Person by Sex

(In Thousands)
2011
2012
37,192 Percentage 37,668 Percentage
22,573
60.69%
22,962
60.96%
14,619
39.31%
14,706
39.04%

2012
89%
94.10%
92.60%
97.60%
90.70%
90.80%
95.70%
95.10%
93.50%
93.50%
94.90%
96.60%
94.90%
95.20%
96.00%
95.70%
96.50%

2013
89.60%
95.90%
90.60%
97.10%
91.10%
89.40%
95.80%
92.20%
92.00%
93.60%
95%
95.70%
94.50%
91.70%
95.90%
93.40%
96.70%

2013
37,819 Percentage
23,100
61.08%
14,719
38.92%

FULL EMPLOYMENT ANALYSIS

For the past 3 years (2011-2013), on the year 2012 recorded the highest employment
rate of 93.2% and the year 2013 had the lowest rate of 92.5%. Men had the highest
employment rate of 93.1% on 2012 and the lowest rate of 92.4% on 2013. On the other
hand it has been reported than on the year 2011 women had the highest employment
rate of 93.4% and the year 2013 had the lowest rate of 92.5%. Based on the other

findings men were highly employed than women with a percentage equaling more than
a half for the past 3 years.
According to employment status by Region, for the year 2011 and 2012 Region II
Cagayan Valley had the highest reported employment rate and NCR had the lowest
rate. And on the year 2013 Cagayan Valley also had the highest employment rate and
Region IV-A CALABARZON had the lowest rate.
According to employed person by Age, ages of 25-34 year-old were highly employed
and the ages of 65 year-old and over were the least employed.
According to educational attainment, it has been reported that high school graduates
and undergraduates had the highest employment rate and those who do not have any
formal educational background had the lowest rate. There are no available data for the
year 2013.
Source of basic data: National Statistics Office, Labor Force Survey, Public Use Files.

Price Level Stability

PHILIPPINES CONSUMER PRICE INDEX (CPI)

Analysis of Price Level Stability

Consumer Price Index (CPI) in Philippines increased to 133.70 Index Points in June of
2013 from 132.90 Index Points in May of 2013. Consumer Price Index (CPI) in
Philippines is reported by the National Statistics Office, Philippines. Philippines

Consumer Price Index (CPI) averaged 37.73 Index Points from 1957 until 2013,
reaching an all time high of 133.70 Index Points in June of 2013 and a record low of
1.27 Index Points in January of 1957. In Philippines, the Consumer Price Index or CPI
measures changes in the prices paid by consumers for a basket of goods and services.

Equitable Distribution of Income

Total Number of Families, Family Income and Family Expenditure and Gini
Coefficient:
2009 and 2006
Selected Indicators

2006

2009

Philippines
Number of families (in thousands)

17,403

18,452

Gini Coefficient

0.4580

0.4484

Total family income ( in billion pesos)

3,006

3,804

Total family expenditure (in billion pesos)

2,561

3,239

Total family savings (in billion pesos)

445

565

Average family income (in thousand pesos)

173

206

At 2009 Prices

Average family expenditure (in thousand

pesos)

147

176

26

31

Total family income (in billion pesos)

2,180

2,378

Total family expenditure (in billion pesos)

1,857

2,024

Total family savings (in billion pesos)

323

353

Average family income (in thousand pesos)

125

129

Average family expenditure (in thousand

pesos)

107

110

19

19

Average savings (in thousand pesos)

At 2000 Prices ( CPI: 2009=160.0;
2006=137.9)

Average savings (in thousand pesos)

Analysis of Equitable Distribution of Income

The GINI index in Philippines was 42.98 in 2009, according to a World Bank report,
published in 2010. Gini index measures the extent to which the distribution of income
(or, in some cases, consumption expenditure) among individuals or households within
an economy deviates from a perfectly equal distribution. A Lorenz curve plots the
cumulative percentages of total income received against the cumulative number of
recipients, starting with the poorest individual or household. The Gini index measures
the area between the Lorenz curve and a hypothetical line of absolute equality,
expressed as a percentage of the maximum area under the line. Thus a Gini index of 0
represents perfect equality, while an index of 100 implies perfect inequality.This page
includes a historical data chart, news and forecasts for GINI index in Philippines.

Economic Securities

Economic Securities Analysis

Economic efficiency occurs when the cost of
producing a given output is as low as possible.
Economic Security of our country for the last 3 years were improved and still improving
in terms of education, food, health, and military services. However, unemployment rate
are increasing due to the lack of job opportunities for Filipino citizens.

Index of Economic Freedom

Index of economic freedom in percentile rankings among the ASEAN-6 from 2001
to 2013

ANALYSIS OF ECONOMIC FREEDOM

The Index of Economic Freedom, guide annually published by the Heritage Foundation,
ranks 179 countries based on their economic success as gauged by ten identified
benchmark areas. In the 2010 index, the Philippines ranked 109th out of 179 countries
and 4th among the ASEAN-6. The country ranked a poor 5th in labor freedom and 6th
among the ASEAN-6 in business freedom and freedom from corruption. Philippine
strengths are in government spending and investment freedom, where it ranked 2nd,
and in monetary freedom and financial freedom, where it ranked 3rd. The percentile
rank of the Philippines has fallen sharply since 2001, from 55th to 39th in 2010 (See
Figure 33). Figure 34 portrays the steep fall of the Philippine ranking in 2010.

ECONOMIC EFFICIENCY

Analysis of Economic Efficiency

Among other ASEAN countries (Laos and Myanmar not included in the survey), the
economic efficiency and competitiveness of the Philippines is improving. From the rank
of 87 in 2009, in the year 2010 moved up in the list to rank 85. After another year, in the
year 2011, it moved up 10 ranks up in place 75 in over-all rankings. The country
continuously improves even up to 2012 where it rank moves up another 10 places,
placing it in rank 65 of the over-all rankings in ASEAN countries.
The competitiveness of the country increases with the improvement in certain factors
affecting the efficiency of the country such as economic performance, government
efficiency, business efficiency and infrastructure. These factors, which obviously
increase also in rank, are the reason why the economic efficiency and competitiveness
of the country also increase in rank. This is because the development of these factors
also improves the development of the Philippines and plays a big role in the foreign
investors, coming into our country.

Balance of Trade

Balance Trade Analysis

Throughout year 2011 up to the first quarter of 2013, Phippines imports
more than it exports (trade deficit). This means that there is an outflow of
monetary payments of the Philippines from domestic to foreign markets;
resulting in a decrease in generate income. The mostly imported
commodities of the Philippines are fuel/lubricants (and other related
materials) which are obviously scarce in the country but needed. Other
imported commodities are electronic products, components/devices, and
transport equipments. The top contries who are the countrys biggest source
of imports are United States, Japan, and China.