Economy - overview:
The Philippines weathered the 2008-09 global recession better than its regional peers, due to lower dependence on exports and higher levels of domestic consumption, fueled by large remittances from four-to five-million overseas Filipino workers. Economic growth in the Philippines averaged 5% per year since 2001, when President MACAPAGAL-ARROYO took office. Despite this growth, poverty worsened during the term of MACAPAGAL-ARROYO, because of a high population growth rate and unequal distribution of income. MACAPAGAL-ARROYO averted a fiscal crisis by pushing for new revenue measures and, until recently, tightening expenditures. In recent years, declining fiscal deficits, tapering debt and debt service ratios, and increased spending on infrastructure and social services bolstered optimism over Philippine economic prospects. Nevertheless, the economy still faces several long term challenges. The Philippines must maintain the reform momentum in order to catch up with regional competitors, boost trade, improve employment opportunities, and alleviate poverty. High government spending to stimulate the economy has created a large budget gap that could limit the government's ability to address these issues.

GDP (purchasing power parity):
$327.2 billion (2009 est.)