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2014 Economic Review of the Philippines

March 09, 2015 | Sharon Cheong

The Philippine Islands are a newly industrialized country with a growing economy and the year 2014 was a strong year for the island nation. The Gross Domestic Product grew in spite of continuing sluggishness in other world economies. Financial analysts are predicting continued economic growth well into the next few years. Most of the growth from 2014 was led by construction, both private and commercial.

In 2014, the government reported a decline in the incidence of poverty, showing statistics that over 2 million people rose from what is considered poverty levels. The job market held jobs for the unskilled as well as the highly educated and incomes rose somewhat during the year. A faster reduction in poverty is expected as the population continues to take advantage of technical schools and advanced educational opportunities.

Drilling & Mining

With a significant quantity of prized minerals such as chromite, nickel, and copper, the mining industry experienced overall increases throughout the Philippines. Natural gas discoveries offered a revitalized strength to the drilling and mining industries as a whole. This attracted local and foreign investors to the region, which should provide hundreds of good jobs even into the next decade.

Importing & Exporting

The Philippine economy thrives on its import/export industries and they include a wide range of products, such as electronic components, semiconductors, textiles, and petroleum products. Because of the low cost of labor, electronics firms outsourced much of their manufacturing, shipping their products from the Philippines to destinations all over the world.

Real Estate Investing & Consulting

A highly lucrative sector, real estate investing has grown during the last few years including 2014. As foreigners and locals buy up commercial and residential property, the construction industry also grew. Real Estate Consultants found a market within the investment community as certain zones of the Philippines moved into a more favorable light for development.

Continued Growth Expected

Many areas of the world now choose countries like the Philippines for outsourcing their manufacturing. Because of this, Metro Manila experienced the greatest economic growth in years. Large companies in the UK and America relocated all or part of the operations to the Philippines largely due to the low worker wages. The Gross Domestic Product gradually rose throughout 2014 led by imports and exports, pharmaceutical research and government spending.

A major biopharmaceutical company, AstraZeneca, now has 5 multinational pharmaceutical companies located in the Philippines. The company employed over 260 employees during 2014 with plans for expansion into 2015.  Their laboratories develop and manufacture important drugs that treat cancer, infections, cardiovascular disease and many other illnesses.

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