The Philippine Economy: How Does an Economy Grow

• Gross domestic product - is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.
• Economy - is an area of the production, distribution and trade, as well as consumption of goods and services.
• The Philippines economy grew at a pace of 7.6% in 2022, the fastest rate of economic growth recorded by the Philippines since 1976.
• With strong growth forecast over the medium-term outlook, the size of Philippines GDP measured in US Dollar nominal terms is set to reach USD one trillion by 2033.
• this will make the Philippines one of the largest emerging markets in the Asia-Pacific as well as a leading emerging market globally.
• Average annual GDP per person has also risen dramatically over the past two decades, from below USD 1,000 per person in 2000 to USD 3,500 by 2022 and is projected to rise above USD 6,000 per person by 2030.
• Philippines - One of World's Fastest Growing Emerging Markets
• Philippine economic growth is expected to moderate this year due to inflation and global headwinds before picking up in 2024 as price pressures ease, according to a report released by the Asian Development Bank (ADB)
• Asian Development Bank (ADB)
•  Asian Development Outlook (ADO)
• ADB’s Asian Development Outlook September 2023 forecasts the Philippine economy to grow by 5.7% this year compared to the 6.0% projection in the April report.
• The government met its target spending on infrastructure of 5.3% of GDP in the first half of the year and is expected to maintain this level of investment with several big-ticket projects underway.
• Forecasts for inflation are maintained at an average of 6.2% in 2023 and 4.0% in 2024, the report said. However, possible severe weather disturbances including the El Niño dry weather phenomenon, pressures from elevated global commodity prices, and second round effects from higher transport fares and minimum wage hikes could slow the pace of inflation easing. 
• Economic growth - is an increase in the production of goods and services in an economy. Increases in capital goods, labor force, technology, and human capital
• When economies grow, states can tax that revenue and gain the capacity and resources needed to provide the public goods and services that their citizens need, like:

  • healthcare
  • education
  • social protection
  • basic public services.
• Capital accumulation - refers to an increase in assets from investments or profits and is one of the building blocks of a capitalist economy.
• Capital Accumulation - The goal is to increase the value of an initial investment as a return on investment, whether that be through appreciation, rent, capital gains, or interest.
• The three-sector model: 

  • extraction of raw materials (primary)
  • manufacturing (secondary)
  • service industries which exist to facilitate the transport and distribution (tertiary).
• Primary Sector - Examples activities include agriculture, logging, fishing, and mining.
• secondary sector - consists of processing, manufacturing, and construction companies. The secondary sector produces goods from the natural products within the primary sector.
• tertiary sector - covers a wide range of activities from commerce to administration, transport, financial and real estate activities, business and personal services, education, health and social work.
• primary sector - is the economic sector that revolves around the extraction of raw materials/natural resources.
• Tertiary sector - The services sector of the economy is comprised of transportation, communication and storage, trade finance, real estate, private services and government services sectors.
• secondary sector - is the sector of the economy that revolves around manufacturing.
• two main sources of economic growth: 

  • growth in the size of the workforce
  • growth in the productivity
• Productivity growth - allows people to achieve a higher material standard of living without having to work more hours or to enjoy the same material standard of living while spending fewer hours in the paid labor force.
• Technological change - The most significant technological developments in the modern world took place in electronics, computers, telecommunications, aviation industry and so on.
• Investment - businesses can build up their stock of physical capital, which increases their capacity to produce goods and services.
• Investment - example, when a restaurant purchases an additional grill, it increases its capacity to prepare food over any given time period.
• Investment - companies can reap the benefits of economic growth and development while promoting sustainability for all.
• Investment - provide access to new markets, resources, technologies and capabilities that drive economic growth, create jobs and build local infrastructure