Philippine economy exhibits stability.

It is well known that the President of the Philippines is an economist in addition to being a skilled politician. During her tenure as President, she has made a series of highly unpopular decisions, which have contributed significantly to the development of the Philippine economy.

A recent speech reveals the President's pride in her accomplishments. Among her remarks: "Our unemployment rate is the lowest in a generation. Our poverty rate is the lowest as well. Our economy has reached a new level of maturity and stability with some of the strongest macroeconomic fundamentals in a decade."

No matter that this remark glosses over the difficulties to come-these are serious accomplishments.

According to International Monetary Fund (IMF) statistics, the Philippine economy grew 5.4 percent in 2006. The IMF estimates GDP growth in 2007 at 5.8 percent, and also at 5.8 percent for 2008.

A June 14, 2007 posting on the website of the Philippine Daily Inquirer (Makati City, as central Manila is known) of a late 2006 speech by the publisher of a Philippine business news magazine, added detail specific to the country's consumer economics. Remarking that the Philippines had grown an average of 4.7 percent over the past 22 consecutive quarters with productivity increasing 25 percent over the past five years, the publisher said, "Economic growth now outpaces population growth at a ratio of two to one."

What this means for consumers is that the Philippine economy now has the ability to feed, clothe, and educate its population well into the future.

The publisher said that several industrial sectors-services, agriculture, industry and manufacturing-have contributed strongly to Philippine growth. "Adding vibrancy to these sectors is consumer spending and the rise of cellular technology," he added. Personal consumption expenditure accounts for 69.6 percent of the economy's total output [2006].

Much of the volume of consumer spending is based on remittances from Filipinos working abroad. A significant portion of consumer spending goes toward technology, and cellular technology is prominent. The Philippines is made up of 7,107 islands. And 98 percent of these islands are currently linked by wireless technology. "For the first time, the country is united by one medium, the cellular phone," said the publisher.

Internet usage is also a factor. Just under 10 percent of the country's population is connected to the Internet.

Two significant trends: First, food is no longer the biggest item in household budgets. And the second has to do with the coming generation. "Filipino teenagers now spend more on internet cafes, prepaid phone cards and post paid cell phone bills, while trying to economize on food, beverages, personal care, transportation, clothes and reading materials."

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