Philippine Economic Update | Accelerating Reforms to meet the Jobs Challenge


Agriculture and manufacturing turned in solid growth numbers . Growth in the agriculture and fishery sector decelerated to 3.5 percent in 2012 from 4.5 percent in 2011 despite high growth in the production of some major crops . Palay (paddy rice), corn, and pineapple recorded impressive growth of above 6 percent given better weather conditions for the most part of 2012. Super Typhoon Pablo , which hit Mindanao in December 2012, did not disrupt food production in a major way. However, banana production was badly affected. Manufacturing growth accelerated to 5.4 percent in 2012, reflecting strong demand for food , wearing apparel, and tobacco products (Figure 7) . Higher tobacco production reflected the frontloading of the production of cigarettes in fourth quarter of 2012 (Q4 2012) to avoid paying higher excise taxes beginning January 2013. Value - added growth in electronic parts was muted by weak external demand. Overall, labor - intensive manufacturing grew faster than capital - intensive manufacturing , which is good for jobs (Figure 8) . However, its share to total manufacturing gross value - added is low at only around 7 percent

Source InstitutionWorld Bank
Source URL
Page Count54
Place of PublicationPasig City
Original Publication DateMay 1, 2013