Tackles the Philippine Economic Sector. This also includes data from different eras in the Philippines.

1. THE PHILIPPINE
ECONOMIC SECTORS:
AN OVERVIEW

2. Sector Shares in GDP (%)

3. Gross Value Added, by Sector

4. Annual Growth Rate, 2017– 2021
(%)
Economic Sector 17-18 18-19 19-20 20-21
Agriculture, Hunting
and Forestry (inc.
Fishing)
1.1 1.2 -0.2 -0.3
Industry 7.3 5.5 -13.1 8.5
Services 6.7 7.2 -9.1 5.4

5. Employment per Sector
(% of Employed Persons)
Sector Jan
2015
Jan
2016
Jan
2017
Jan
2022
Jan
2023
Agriculture 29.5 26.8 25.5 21.7 22.2
Industry 15.9 16.8 17.4 19.4 17.1
Services 54.6 56.4 57.1 58.9 60.7

6. Agricultural Sector

7. Agricultural Land as Share of Land Area and
Agricultural Value Added as Share of GDP

8. Agriculture
 Source of livelihood of 70% of rural poor
 Attainment of food security and alleviation of
poverty requires rapid, sustainable, and
equitable agricultural growth

9. Agricultural Policy
 Food Self-Sufficiency – local economy
produces 100% of the population’s food
requirement
 Food Security – means ensuring that
household incomes, especially those of the
poor, are sufficient to purchase adequate food
– whether imported or locally produced – at
reasonable prices

10. Governance Issues in
Agriculture
 Most programs and projects continue to be
designed largely at the central level, while:
 Agricultural activities are widely dispersed
geographically and problems are highly location-
specific
 Mechanisms for local and regional feedback to
influence program design at the national level are few
and mainly ineffective
 Public support is required largely in the form of
services (irrigation, research, extension) not
goods (e.g., seeds, fertilizers, pesticides, etc.)

11. Industrial Sector

12. GDP Composition by Sector (2014 in
%)
Sector U.S. Jap. Phil. Indon. Thai.
Agriculture 1.1 1.1 11.2 14.3 12.1
Industry 19.5 25.6 31.6 46.6 43.6
Services 79.4 73.2 57.2 39.1 44.2

13. Employment per Sector
(% of Employed Persons)
Sector Jan
2015
Jan
2016
Jan
2017
Jan
2022
Jan
2023
Agriculture 29.5 26.8 25.5 21.7 22.2
Industry 15.9 16.8 17.4 19.4 17.1
Services 54.6 56.4 57.1 58.9 60.7

14. Record for the Past 40 Years
 In the past 40 years, Philippine record has
been disappointing:
 Manufacturing (largest component of the sector)
output grew slowly (although it is picking up more
recently)
 Exports are very narrowly concentrated in one
product group (electronics)
 Export growth has been disappointing

15. What did the Phils. Export in
2021?

16. Why the Poor Performance?
 Mainly due to problems hounding the entire
economy:
 Costly and misguided interventions (in the form of
financial support, favorable monetary policy)
 Sporadically developed international orientation
(predominantly inward-looking, therefore dependent
on domestic demand)
 Tendency to focus on rent rather than efficiency
 Poor support facilities (such as roads, ports,
electricity, etc.)
 Other factors external to the sector (such as in
agriculture)

17. Coordination Failures
 A firm’s productivity depends not only on its
own efforts and the general economic
conditions, but also on how the upstream and
downstream firms link and perform, its
access to infrastructure, regulations, and
other public goods.
 Industrial Value Chains
 Backward and forward linkages
 E.g., Lamoiyan Corporation

18. Example of an Industrial Value
Chain

19. Services Sector

20. Services Sector
 Produces intangible (invisible) outputs – the
application of labor, skills, and technology –
that change the condition of products or
persons, or that facilitate transfer of knowledge
or ownership, among others.
 Philippines is widely acknowledged as a
source of high-quality human resources in
services trade.

21. Types of Services

22. Types of Services

23. Types of Services

24. Employment in Services Subsectors, March 2022 100.0
Wholesale and retail trade; repair of motor vehicles and motorcycles 37.4
Transportation and storage 11.3
Accommodation and food service activities 5.8
Information and communication 1.9
Financial and insurance activities 2.8
Real estate activities 1.0
Professional, scientific and technical activities 1.1
Administrative and support service activities 8.3
Public administration and defense; compulsory social security 11.2
Education 5.1
Human health and social work activities 2.6
Arts, entertainment and recreation 1.7
Other service activities 10.0
Activities of extraterritorial organizations and bodies 0.0

25. Knowledge-Based Economies
 Economies which are directly based on the
production, distribution and use of
knowledge and information
 Concerned more with flow of ideas instead of
natural resources and goods
 Barriers

26. Knowledge-Based Economies
 Economies which are directly based on the
production, distribution and use of
knowledge and information
 Concerned more with flow of ideas instead of
natural resources and goods
 Barriers: lack of infrastructure, lack of education,
attitudes, government censorship

27. Digitization and Internet
Technologies
 Made feasible the virtual delivery of services
 Co-location of provider and user is no longer
required to effect many types of service
transaction
 E.g., internet banking, e-commerce, distance
learning, telediagnosis

28. Convergence and Stratification
 Convergence
 The feasibility of delivering different types of
services over a common platform (e.g. for
mobile phones: Grab, Lazada, Shopee, games,
medical services, etc.)
 Stratification
 A single service offering may involve several
layers of activities by different enterprises, not
all of which are visible to the user
 E.g., advertising includes photography, modeling,
photo-editing, content, design, etc.