The Gross Domestic Product(GDP) per capita of the Philippines ranks above India and Vietnam, according to the data obtained from International Monetary Fund. Country’s GDP per capita reached above $3000 for the first time in 2018.
“The Philipines is one of the region’s most dynmaic economies in East Asia and the Pacific with a growing middle-income class with a large young population, pushing consumer demand,” World Bank noted.
Moreover, the GDP in 2018 was affected by lower growth in global trade and domestic high inflation. Economic growth moderated to to 6.2 percent from 6.7 percent in 2017.
“In 2019, however, growth is projected to reach 6.4 percent as inflation winds down and spending due to the upcoming midterm elections is likely to boost private consumption growth. Export growth, however, is likely to remain weak, as global growth and trade activities are projected to moderate in the medium term. The government is expected to continue its expansionary fiscal policy agenda, while the BSP may take a pause in its tightening stance as inflationary pressure diminishes. The country will sustain this growth momentum with a growth forecast of 6.5 percent in 2020 and 2021,” World Bank reported.
“Sound economic fundamentals and a globally recognized competitive workforce reinforce the growth momentum. Having sustained an average annual growth of 6.3 percent between 2010-2017 from an average of 4.5 percent between 2000-2009, the country is poised to make the leap from a lower-middle income country with a gross national income per capita of US$3,660 in 2017 to an upper-middle income country (per capita income range of US$3,896 – 12,055) in the near term.,” report added.