• GDP: US$87.6 billion (2005).
• Main imports: Raw materials, machinery and equipment, fuels, vehicles, vehicle parts, plastic and chemicals.
• Main exports: Electrical equipment, machinery and transport equipment, garments, optical instruments, coconut products, fruit and nuts, copper products and chemicals.
• Main trade partners: China (PR), Hong Kong (SAR), Japan, Korea (Dem Rep) Malaysia, The Netherlands, Singapore, Taiwan (China), UK and USA.

The agricultural sector produces rice, corn, coconuts, copra, sugar cane and bananas as the main crops. Production of timber, formerly a major export earner, has been suspended due to the effects of deforestation. There is a moderately sized mining industry producing copper, gold, silver, nickel and coal. Offshore oil production is due to begin in the next few years.

Most of the Philippines’ recent economic development has been industrial, with food processing, oil refining, and the production of chemicals, electrical machinery, metal goods and textiles all having been established during the last 20 years.

Broad financial incentives aimed at attracting foreign investment capital, and the creation of five export processing zones (EPZ) with concessionary tax rates and tariffs, prompted strong growth during the early and mid 1990s. However, it also produced a somewhat skewed economy in which the Manila area, known as the National Capital Region, now hosts 15% of the population and accounts for one-third of GDP: there are huge income disparities between the capital and the rest of the country.

The Philippines’ economic growth came to a shuddering halt in late 1997 when the collapse of the region’s currencies produced a stock market crash, high inflation, the cessation of foreign investment, and a large budget deficit. El Niño, the climatic system which wreaks periodic havoc upon the Philippines, worsened the situation further.

The economy has since recovered fairly well. In 2006, growth was 5.4% and inflation was reduced from 7.8% to 6.2%. Industrial production has picked up after several years of decline. In 2004, foreign investment quadrupled and local investment increased by 50%. Foreign aid (including a US$100 million subvention from the USA in 2002) has helped the country’s finances, along with a sharp increase in remittances from the thousands of Filipinos working abroad.

The Philippines’ longer term economic prospects will depend on the government’s vigour in pursuing essential and overdue reforms to the tax and banking systems, and improvements to the country’s shaky infrastructure.

The Philippines belong to the Association of South East Asian Nations and the Asian Development Bank.

The weather is almost uniformly warm and humid and so a shirt with a tie can be worn for business visits. Filipinos have an American business style and English is widely spoken. Best months for business visits are October to November and January to May. Unless you have urgent business matters to attend to, business visits around Christmas and Easter are not recommended as delays tend to be unavoidable.

Office hours: Usually Mon-Fri 0800-1700. Some private sector offices are open Sat 0900-1200.

Philippine Trade and Investment Promotion Centre in the UK
1a Cumberland House, Kensington Court, London W8 5NX, UK
Tel: (020) 7937 1898.
E-mail: dtilondon1@aol.com

Philippine Chamber of Commerce and Industry
19/F Salcedo Towers, 169 H.V Del Costa Street, Salcedo Village, Makati City, Philippines 1227
Tel: (2) 844 5713.
Website: www.philippinechamber.com

Philippine Convention and Visitors Corporation
4F Legaspi Towers, 300 Roxas Boulevard, Metro Manila, Philippines 1004
Tel: (2) 525 1255 or 9318.
Website: www.dotpcvc.gov.ph

Many establishments are members of the Philippine Convention and Visitors Corporation (PCVC). Popular locations for conferences and conventions are the Philippine International Convention Centre and the World Trade Centre. For further general information, contact the PCVC (see Commercial Information below).