Question

What are 2–3 relationships between the inflation in the Philippines and that specific country's economy? Support your discussion of the trends with statistical evidence.

Answer 1

In 2017, the inflation rate in the country of Philippines has been 3.07% that is showing the direct relationship with the GDP of Philippines that is $321 Billion. Earlier in 20016, the inflation rate was 1.78% and the GDP was $305 Billion. It shows that the GDP has increased with the increased level of Aggregate demand and it has contributed to the increase level of price and subsequent inflation rate. There is an increased level of GDP per capita that is $3022 from $2926 and it shows that increased GDP per capita fuels the demand and price rises in the economy. Unemployment level also came down has been in the range of 5.5% to 5.7%. So, the inflation rate does not reflect the change in the unemployment rate in the economy of Philippines and it can be due to the policy planning that is not making a significant impact upon the unemployment level.

References:

Philippines: Unemployment rate from 2007 to 2017. Retrieved from: https://www.statista.com/statistics/578722/unemployment-rate-in-philippines/

Philippines: Gross domestic product (GDP) in current prices from 2012 to 2022 (in billion U.S. dollars). Retrieved from: https://www.statista.com/statistics/578709/gross-domestic-product-gdp-in-philippines/

Philippines: Inflation rate from 2012 to 2022 (compared to the previous year). Retrieved from: https://www.statista.com/statistics/578717/inflation-rate-in-philippines/