Philippines

A $1.66bn stimulus plan announced earlier this autumn is expected to stimulate domestic demand in the Philippines as effects from the ongoing global economic turbulence continue to impact the country’s economy. The programme is designed to make up for government underspending that many claim has led to lower-than-expected growth in the first half of 2011, but ensuring that the money is spent in a timely and efficient manner may be a challenge.

The Philippines’ economy appears to be slowing, with most analysts revising the country’s growth predictions as weakening demand in global markets undermines its export trade. However, given the Philippines’ sound fiscal reserves, there are few concerns that economic expansion will actually stall.

The Philippines is looking to encourage the development of organic farming, seen as a niche agriculture sector ripe with opportunity for the country. With the proper support, organic farming could work to boost high-value agricultural exports as well as incomes in the agriculture sector, which currently employs more than 30% of the nation’s labour force.

There are signs that the Philippines insurance industry may be heading towards a period of solid growth, with both the state and the private sector stepping up efforts to encourage the public to embrace insurance as a way of life. It will be some time, however, before the domestic market will be able to rival that of most of its neighbours.

The Philippines is very gradually edging closer to the establishment of a dedicated government department charged with promoting and supporting the information and communications technology (ICT) sector, though it would take some time before the new agency can achieve its supporters’ lofty ambitions.

The Philippines government has announced plans to step up spending on transport infrastructure, with upgrades to existing ports and the development of new maritime cargo handling facilities to be given priority.