Transcript Slide 1
THE PHILIPPINE ADVANTAGE
Secretary Peter B. Favila
Department of Trade and Industry
PHILIPPINE ECONOMIC SCORECARD
GDP growth of 5.6% (S2 2006)
Agriculture 5.2% - Industry 5.1% - Services 6.1%
Fiscal performance on track
Jan to July 2006 revenue collections up by 20%
Deficit is PhP B34.1 lower year-on-year
Philippine Peso is one of Asia’s best performing
currencies
4-year high bolstered by OFW remittance, exports and portfolio investments
Headline inflation continued to ease at 6.5% (as of July
2006)
Gross international reserves reached an all-time high
at US$21.3B (as of July 2006)
Stable and low interest rate environment
2005 Milestones
5.1% GDP growth
3.9% Export growth
149.8% Net FDI growth
strong
performance
continues into
2006 . . .
FOREIGN TRADE
AND
INVESTMENT
PERFORMANCE
1st Semester 2006
5.6% GDP growth
16.8% Export growth
114.6% Net FDI growth
Strong export performance is supported by the
continuing diversification of merchandise
exports …
US$ 22.7B Exports in 1st Semester 2006
Top Exports (Jan to Jun 2006)
Electronics
Value (US$B) % Share
14.196
62.6
Automotive/Machinery
1.225
5.4
Garments
1.208
5.3
Minerals/Petroleum products
0.771
3.4
Other Consumer and Industrial
2.196
9.7
Food/Agro-based products
2.088
9.2
Source: DTI-Tradeline (derived from primary NSO data)
… and the rise of new markets and expansion
of trade relations.
EXPORT PERFORMANCE BY REGIONAL BLOCS
Jan-Jun 2006
2000
Other
Hong Kong Countries
5.0%
7.8%
Taiwan
Japan
14.7%
7.5%
China
1.7%
ASEAN
15.7%
Other
Hong Kong Countries
7.1%
7.4%
Taiwan
3.9%
Japan
17.6%
China
8.9%
U.S.
29.5%
E.U.
17.9%
Source: BETP (derived from primary NSO data)
ASEAN
18.1%
U.S.
17.6%
E.U.
19.3%
FDI flows remain on the uptrend . . .
1000
FOREIGN DIRECT INVESTMENT,
net (US$M)
500
0
S1 2004
Source: Bangko Sentral ng Pilipinas (BSP)
S1 2005
S1 2006
. . . and investment approvals signal that the
growth trend will continue.
Total approved investments at US$ 2B in 1st Semester 2006
BOI-PEZA Approved Investments by Sector
January – June 2006
Real Estate,
Renting and
Business
Activities
8%
IT Services
5%
Others
3%
Wholesale &
Retail Trade
25%
Infrastructure/
Industrial
Manufacturing
Facilities
18%
42%
Sources: Board of Investments (BOI) and Philippine Economic Zone Authority (PEZA)
POLICY DIRECTIONS
Continued fiscal consolidation
Countrywide development through
the super regions
Increased infrastructure spending
Clear agenda for competitiveness
Reforms for good governance
Macroeconomic achievements are carried
through at the operating level . . .
A more responsive government and a
business-friendly environment
Focus on infrastructure development and
competitiveness-enhancement
Emergence of new growth industries
Renewed investor confidence
THE PHILIPPINE ADVANTAGE IN e-SERVICES
Location, Location, Location
Strategic location in Asia
Strong infrastructure support
Centrally-located IT parks
Supportive Regulatory
and Policy Environment
Government priority
Incentives package
Significant Impact on Bottomline
Human resource advantage
Efficiency and productivity
Cost savings – IT personnel, real
estate, telecoms
Discover
The
Philippine
Advantage!