Philippines

January’s revelation that the Philippines’ economy grew 3.7% in 2011 came as the government and central bank announced new measures to further boost growth. Indeed, President Benigno Aquino’s administration plans to spend its way through current economic challenges, refocusing on domestic − rather than foreign − markets.

The Philippines’ construction sector appears set for a busy year, with the state planning to inject billions into the industry. While the government’s infrastructure programme continues to ramp up, the country’s contractors are looking forward to increased public spending after a slower-than-expected 2011.

In the Philippines’ current plans for a major upgrade of the country’s agricultural sector, the most dramatic move is a determination to transform the country from being the world’s top rice importer to becoming a net rice exporter by 2014. This is undoubtedly a formidable task, as rice is the Philippines’ main food staple:

The Philippines may be heading towards a period of economic introspection, looking inward for growth and stability as the shadow of slower economic growth appears to be spreading over many of its key trading partners. The country’s inner strength was tested late in 2011, however, by natural disaster and other domestic concerns.

With 2011 having seen a spike in visitor arrivals, the Philippines’ tourism sector is moving ahead with plans to become a major engine for the country’s economic growth.

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.