Question

analyze the economic health and productivity of the Philippines. You will need to gather data and then analyze the data and supply a recommendation as to whether your fictional boss should open a business in this country. Begin by gathering economic data, a list of where to start is below (these are only some, you should think of other data points that will aid your analysis:

GDP

Population

Inflation rate

Unemployment rate

Worker productivity (there are a number of calculations for this)

Exchange rate

Total debt – government and individual

Government deficits

Mean or median population age

Labour force participation rate

Exports

Imports

Once you have gathered sufficient data please analyze that data to determine if this country would be a good country to open a business in.

Answer 1

                        According to the recent World Bank statistics of 2019, Philippines is the 33^rd largest economy by nominal GDP. With a population of nearly 10.7 crore, it is one of the most emerging economies of the world. It has a GDP of almost $360 billion and a GDP per-capita of almost $3500. The inflationary rate of Philippines is nearly 2.5% and the unemployment rate is nearly 10%. Although the Covid scenario has affected the economy with a record nearly 18% unemployment rate by April 2020, the country has been able to recover the repercussions of the effect and has been striving forward to remain competent in the current world economy.

                        The general government debt of Philippines is nearly P$8.6 trillion of which nearly 6 trillion is contributed by the domestic debt and the rest by the external debt. The current labor force participation rate is more than 60% which is expected to remain the same in the years to come. This implies that the domestic economy of Philippines is more than sufficient for self-sustenance and hence the economic environment of the nation is safe within the economy and the external factors are not likely to affect the working conditions of the economy. Expected to be the 16^th biggest economy of the world y 2050, the economy of Philippines is one of the most attractive destinations to invest while considering the economic effects that are being faced by the whole world.

                        With more than 6% of yearly growth rate of GDP, the economy of Philippines is continuously evolving and expected to be so in the near future. Although still being dominated by the agricultural sector, the contribution of the technological advancements and the industrialised sectors have been continuously increasing and hence it is one of the most fastest economies in transition in the world. With a major contribution to the ship building industry and the automobile sector, Philippines has made significant contributions to the world. The contributions being made to the aerospace, electronics and mining industries have also increased by significant means and thus these promise to be the most evolving sectors which could attract much investments in the near future. It is the world leader in Business Process Outsourcing and has made huge impacts on the Initial offerings for establishments of firms.

                        All the above economic conditions of Philippines suggests that it is beyond doubt a good investment option in the near future and hence can be suggested as a better option to invest in sectors like electronics, automobile and other technological service sectors which are developing as a part of the emerging economy of Philippines.