Philippine food exports hit $2.

6B in 11, up 21%

Philippine food exports rose by 21 percent to $2.57 billion in 2011, from $2.12 billion the previous year, due largely to increased sales to key markets of fruits and vegetables, processed food and beverages, and marine products. But even with these gains, Philippine Food Processors and Exporters Organization Inc. (Philfoodex) president Roberto C. Amores noted in a statement that much can still be done to enhance our export performance. The Philippine food export turnover is far behind our Asean neighbors. For example, Thailands food exports reached $24.38 billion in 2010 and increased to $27.65 billion in 2011 despite the protracted financial crisis in the US and Europe and the recent great flood in Thailand, Amores explained. For the Philippines to catch up, there must be increased investments in the agro-food sector focusing on the development of export competitive products and supporting small and medium enterprises (SMEs), Amores said. Amores noted that the P80-million funding support for export promotions and other development activities would help boost the local export industry. Of the amount disbursed last year, P20 million was allotted for export promotion, while the remaining P60 million was used to put up common service facilities for the SMEs. We look forward to benefiting from the Department of Trade and Industrys common service facilities, which were a result of the P60-million government export development fund. Expectations are also high for the institutionalization of export competitiveness fund under the Philippine Export Development Plan (PEDP) as approved by President Aquino last year, said Sergio Ortiz-Luis, president of Philippine Exporters Confederation Inc. (Philexport). According to Ortiz-Luis, strong emerging markets like the Middle East and North Africa (MENA) region are seen to provide huge business opportunities for the Philippine food exporters. As stated by a sector brief of the World Bank on agriculture and rural development, more than half of the food consumed in the MENA region is imported, making it the largest food-importing region in the world. The estimated size of global halal food sector for 2011 is $661 billion, according to the World Halal Forum. 2011 FIRST SEMESTERS TOP 10 IMPORTED PRODUCTS ACCOUNT 75.0 PERCENT

Aggregate payment for the countrys top ten imports for the first semester of 2011 reached $22.867 billion or 75.0 percent of the total import bill, registering a positive growth of 11.4 percent from $20.524 billion during the first semester of 2010 Electronic Products, accounting for 32.6 percent of the total import bill posted an increment of 13.4 percent to $9.941 billion from $8.767 billion during the first semester of 2010. Mineral Fuels, Lubricants and Related Materials ranked second with 19.5 percent share, up by 24.5 percent to $5.943 billion from last year first semesters $4.774 billion. Transport Equipment ranked third, comprising 4.7 percent of the total imports, fell by 7.4 percent from $1.556 billion to $1.441 billion during the first semester of 2011. Industrial Machinery and Equipment ranking fourth, also recorded a 4.7 percent share and posted an increase of 22.8 percent to $1.425 billion worth of imports from $1.161 billion during the first semester of 2010. Organic and Inorganic Chemical ranked fifth with 2.9 percent share of the total imports, worth $883.82 million, higher by 33.3 percent from $662.87 million during the first semester of 2010. Plastics in Primary and Non-Primary Forms, accounting for 2.6 percent of total imports, ranked sixth as foreign bill amounted to $789.53 million, up by 48.2 percent (highest year on year change among the top ten imports in first semester 2011) from $532.61 million during the first semester of 2010. Rounding up the list for the top ten imports for the first semester of 2011 were Cereals and Cereal Preparations, $713.68 million, decreased by 56.8 percent; Iron and Steel, $658.03 million, grew by 13.7 percent; Telecommunication Equipment and Electrical Machinery, $592.84 million, up by 32.0 percent; and Medicinal and Pharmaceutical Products, $478.81 million or an annual increase of 22.9 percent.

Economy - overview
Philippine GDP grew 7.3% in 2010, spurred by consumer demand, a rebound in exports and investments, and election-related spending. The economy weathered the 2008-09 global recession better than its regional peers due to minimal exposure to troubled international securities, lower dependence on exports, relatively resilient domestic consumption, large remittances from four- to five-million overseas Filipino workers, and a growing business process outsourcing industry. Economic growth in the Philippines averaged 4.5% during the MACAPAGAL-ARROYO administration. Despite this growth, poverty worsened, because of a high population growth rate and inequitable distribution of income. The AQUINO administration is working to reduce the government deficit from 3.9% of GDP, when it took office, to 2% of GDP by 2013. The government has had little difficulty issuing debt both locally and internationally to finance the deficits. AQUINO's first budget emphasizes education, health, conditional cash transfers for the poor, and other social spending programs, relying on the private sector to finance important infrastructure projects. Weak tax collection, exacerbated by new tax breaks and incentives, has limited the government's ability to address major challenges. The AQUINO administration has vowed to focus on improving tax collection efficiency rather than imposing new taxes - as a part of its good governance platform.

GDP (purchasing power parity)

$351.4 billion (2010 est.) $327.4 billion (2009 est.) $323.9 billion (2008 est.) note: data are in 2010 US dollars

GDP (official exchange rate)

$188.7 billion (2010 est.)

GDP - real growth rate

7.3% (2010 est.) 1.1% (2009 est.) 3.7% (2008 est.)

GDP - per capita (PPP)

$3,500 (2010 est.) $3,300 (2009 est.) $3,400 (2008 est.) note: data are in 2010 US dollars

GDP - composition by sector

agriculture: 12.3% industry: 32.6% services: 55.1% (2010 est.)

Population below poverty line

32.9% (2006 est.)

Labor force
38.9 million (2010 est.)

Labor force - by occupation

agriculture: 33% industry: 15% services: 52% (2010 est.)

Unemployment rate
7.3% (2010 est.) 7.5% (2009 est.)

Unemployment, youth ages 15-24

total: 17.4% male: 16.2% female: 19.3% (2009)

Household income or consumption by percentage share

lowest 10%: 2.4% highest 10%: 31.2% (2006)

Distribution of family income - Gini index

45.8 (2006) 46.6 (2003)

Investment (gross fixed)

20.2% of GDP (2010 est.)

Budget
revenues: $26.78 billion expenditures: $33.75 billion (2010 est.)

Taxes and other revenues

14.2% of GDP (2010 est.)

Budget surplus (+) or deficit (-)

-3.7% of GDP (2010 est.)

Public debt
52.4% of GDP (2010 est.) 54.8% of GDP (2009 est.)

Inflation rate (consumer prices)

3.8% (2010 est.) 4.2% (2009 est.)

Central bank discount rate

3.8% (31 December 2010 est.) 3.5% (31 December 2009 est.)

Commercial bank prime lending rate

7.673% (31 December 2010 est.) 8.566% (31 December 2009 est.)

Stock of narrow money

$29.08 billion (31 December 2010 est.) $24.86 billion (31 December 2009 est.)

Stock of money
$24.32 billion (30 November 2009) $22.53 billion (31 December 2008)

Stock of quasi money

$55.71 billion (30 November 2009) $65.85 billion (31 December 2007)

Stock of broad money

$97.35 billion (31 December 2010 est.) $83.3 billion (31 December 2009 est.)

Stock of domestic credit

$98.22 billion (31 December 2010 est.) $85.54 billion (31 December 2009 est.)

Market value of publicly traded shares

$202.3 billion (31 December 2010) $130.5 billion (31 December 2009) $85.63 billion (31 December 2008)

Agriculture - products
sugarcane, coconuts, rice, corn, bananas, cassavas, pineapples, mangoes; pork, eggs, beef; fish

Industries
electronics assembly, garments, footwear, pharmaceuticals, chemicals, wood products, food processing, petroleum refining, fishing

Industrial production growth rate

23.2% (2010 est.)

Electricity - production
59.19 billion kWh (2009 est.)

Electricity - production by source

fossil fuel: 55.6% hydro: 17.5% nuclear: 0% other: 26.9% (2001)

Electricity - consumption
54.4 billion kWh (2009 est.)

Electricity - exports
0 kWh (2009 est.)

Electricity - imports
0 kWh (2009 est.)

Oil - production
33,110 bbl/day (2010 est.)

Oil - consumption
310,000 bbl/day (2010 est.)

Oil - exports
60,460 bbl/day (2009 est.)

Oil - imports
338,400 bbl/day (September 2010 est.)

Oil - proved reserves

138.5 million bbl (1 January 2011 est.)

Natural gas - production

3.15 billion cu m (2009 est.)

Natural gas - consumption

3.15 billion cu m (2009 est.)

Natural gas - exports

0 cu m (2009 est.)

Natural gas - imports

0 cu m (2009 est.)

Natural gas - proved reserves

98.54 billion cu m (1 January 2011 est.)

Current Account Balance

$9.51 billion (2010 est.) $9.358 billion (2009 est.)

Exports
$50.68 billion (2010 est.) $37.61 billion (2009 est.)

Exports - commodities
semiconductors and electronic products, transport equipment, garments, copper products, petroleum products, coconut oil, fruits

Exports - partners
China 19%, US 13.4%, Singapore 13.2%, Japan 12.8%, Hong Kong 7.6%, Germany 4.2%, South Korea 4.1% (2010)

Imports
$61.07 billion (2010 est.) $46.45 billion (2009 est.)

Imports - commodities
electronic products, mineral fuels, machinery and transport equipment, iron and steel, textile fabrics, grains, chemicals, plastic

Imports - partners
Japan 14.1%, China 13.6%, US 9.9%, Singapore 9.3%, Thailand 6.5%, South Korea 5.6%, Indonesia 4.1% (2010)

Reserves of foreign exchange and gold

$62.37 billion (31 December 2010 est.) $44.24 billion (31 December 2009 est.)

Debt - external
$61.42 billion (30 June 2011 est.) $62.62 billion (31 December 2010 est.)

Stock of direct foreign investment - at home

$25.27 billion (31 December 2010 est.) $23.56 billion (31 December 2009 est.)

Stock of direct foreign investment - abroad

$6.582 billion (31 December 2010 est.) $6.095 billion (31 December 2009 est.)

Exchange rates
Philippine pesos (PHP) per US dollar 45.11 (2010) 47.68 (2009) 44.439 (2008) 46.148 (2007) 51.246 (2006)