The Philippine
Economy
1
Objectives
At the end of the lesson, the students are
expected to:
1.Analyze the situation of the Philippine
economy;
2.Understand the process of economic
development in the Philippines; and
3.Familiarize the fundamental economic
problems.
2
The Philippine Economy
• The Philippines is an island nation located in the Malay
Archipelago in Southeast Asia. The Philippines is rich in
biodiversity
• Manila
• Tropical
• As of November 2, 2020- 110,069,447 – 1.41%
• The national economy is composed of business enterprises,
household and the government.
• Economic System- Mixed Economy
3
4
Philippine Economic Development
• The Philippines is primarily considered a newly
industrialized country.
• GDP – 383.48 billion dollars
• World's 35th largest economy by nominal GDP
• Developing Country – Human Developing Index
• Low middle income economy
• GDP vs GNP
• Economic Growth vs Economic Development
5
Philippine Economic Development
6 Source: Oxford Economics
The Philippine Economy
• Our economy has not improved much in terms of the
interests of the masses, because of our colonial and
primitive agricultural economy.
• A deeper analysis of the economies of rich countries
reveals that most of them are not endowed with
abundant resources. “Japan is a very good example”.
• In economic development, the bottom line is the
quality of the people of a given country.
8
The Entrepreneurial Economy
9
The Colonial Rule
• The Philippine became the slave of three colonial masters:
Spain, United States and Japan.
• For more than three centuries we were under Spanish rule, and
about half a century under the American regime.
• February 13, 1565- Spanish Colonial Rule
• June 12, 1898- Independence day
• January 2, 1942 – September 2, 1945 (Japanese Occupation)
• The United States formally recognized the independence of
the Republic of the Philippines on July 4, 1946.
18
Fundamental Economic Problems
3 BASIC ECONOMIC PROBLEMS
Because all economic resources are scarce, every society must answer three questions:
1. What to produce?
a society must determine what and how much of each of the many possible goods and
services it will make and when they will be produced.
2. How to produce?
a society must determine who will do the production, with what resources, and what
production techniques they will use
3. For whom to produce?
who gets to eat the fruit of economic activity?
how is the national product divided among different households?
19
Fundamental Economic Problems
• The biggest problem of our country is
unemployment.
• Unemployment creates social problem such as
housing, health and sanitation, prostitution,
robbery and other social related crimes.
• The grim faces of poverty are all around us.
Dirty individuals, young and old, are begging in
all busy streets.
20
The Entrepreneurial Economy
• Employees get only low salaries, and they are not the boss.
• Many Filipinos are poor and jobless. Yet our country is rich in
natural resources. The government should train the poor to be
entrepreneurs.
• Some of the traits of successful entrepreneurs are self-reliant,
hardworking, creative and risk takers.
• Our country is a poor country because of the quality of its
people. Poor natural resources and yet they are rich.
• The real and enduring wealth of any country is its people
21
References
• https://vdocuments.mx/strategies-for-wealth-creation.html
• https://www.worldometers.info/world-population/philippines-population/
#:~:text=the%20Philippines%202020%20population%20is,(and
%20dependencies)%20by%20population
• https://www.adb.org/news/philippine-economy-decline-further-2020-amid-
covid-19-recovery-2021#:~:text=MANILA%2C%20PHILIPPINES
%20(15%20September%202020,Bank%20(ADB)%20released%20today
• https://blogs.worldbank.org/opendata/new-world-bank-country-
classifications-income-level-2020-2021
• https://www.businessinsider.com/world-bank-released-new-poverty-lines-
see-where-your-country-falls-2017-10
• https://en.wikipedia.org/wiki/Economy_of_the_Philippines
22
