Drivers of the Philippines economy

By definition, the Philippines economy is considered as a mixed economic system.

The country with a mixed economy like the Philippines will often incorporate aspects of more than one economic system. This means that the country like the Philippines may feature more than one economic system- like capitalism and socialism.

Traditionally most of the economies now in the world are considered to be of the mixed economy-type. The country may not be one of the biggest economies in the world right now but the Philippine is considered as one of the newly emerging industrialized economies in the world.

In a ranking that was made by the International Monetary Fund based on the purchasing power parity, the country ranked well and in fact this was ranked as the 37th largest economy. The country is considered as the fastest-growing economy in Southeast Asia as the country posted real GDP growth of 7.3 percent for 2007. This figure in 2007 allowed the country to level the pace that was achieved by India. Industries in the country are concentrated on its major cities like Metropolitan Manila and Cebu. Palawan is getting a fair share of investors as well thanks to the gas finds in the area.

The important sectors in the country are will include agriculture, industry, food processing, textiles and garments, electronics and automobile parts. Mining is getting attention in the country as well. Though there are a number of sectors that are gaining ground and contributing to the economy of the country, still its agricultural sector accounts to a greater part of the economy. The country will always be known for its agricultural lands and industries. As a matter of fact, it is here in the country where the pre-eminent research firm on rice is located- the International Rice Research Institute. This research firm has a role in promoting rice development in the region and has a hand in the so-called 'Green Revolution' where it successfully helped in increasing rice yields and helped in the production of rice in the 1970s.

The country is known for its automotive sector

The country is a major player when it comes to automotive car parts and accessories. For example, the ABS that can be seen on the Mercedes-Benz, Volvo and BMW are actually made in the Philippines and these parts are exported to other countries. The country also started exporting cars recently and this was initiated by Ford Motor Company in 2005.

Two other major auto companies like Nissan and Toyota establishes offices and factories in the country.

Electronics sector is thriving and well in the country

Intel is a global electronics company and this company has been in the country for the last 28 years now. It is here where some of the company's products are produced like the Pentium 4 processor. Another electronics company, the Texas Instruments has set shop in the country. The company is located in Baguio and has been operating in the country for the last 20 years. The TI Company in the country is the supplier of chips to Nokia phones and 80 percent of the chips used for the Ericsson phones.

The Philippines is known for its outsourcing industry

Most of the companies that are involved in the outsourcing industry are located in Metropolitan Manila. The country is a player when it comes to outsourcing; the Philippine is considered as Asia-Pacific's second largest call center market next only to India. Most of the BPO firms that have established business in the country are from the United States.

This sector employs a great number of young Filipinos and based on date from 2005, around 100,000 jobs are in the call center business. Most of the BPO firms are concentrated on major Philippine cities like Manila, Cebu and Bacolod.

The country is a player in the mining industry too

The Philippines is rich in natural resources and this is the main reason why mining is thriving in the country. Palawan is getting the attention now, since natural gas reserves have been discovered in the province. The gas reserves have been discovered in the Malampaya Fields.

The Philippines economy is still growing with the agricultural sector still being one of the important sectors in the country. The services sector is growing too, thanks to the growth of the BPO sector.