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Economics and Politics in the Philippines - Research Paper Example

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It has rich, arable lands, diverse flora and fauna, and a wide range of mineral deposits. Declining fiscal deficits, reduced external and public debt, and increase in…
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Economics and Politics in the Philippines
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Economics and Politics in the Philippines

Download file to see previous pages... The government encourages more foreign investments in industries such as mining, tourism and business processing operations (Philippines Economic Statistics).
The Bangko Sentral ng Pilipinas controls the foreign exchange market. It ensures orderly conditions in the foreign exchange market. Supply and demand determine the exchange rates in the market and is consistent with the Government’s regulations on market-oriented reforms and strategies of achieving competitiveness via price stability and efficiency (from Bangko Sentral ng Pilipinas).
The Philippines has increased bilateral trade with many countries leading to increased trade volumes which increase economic growth. Its main trading partners are Japan 12.5%, United States 12%, China 8.8%, Singapore 8.7%, South Korea 7.9% and Taiwan 5.7% (from ADB Annual Report 2010).
The Philippine government has over the years implemented tax measures that increase government budget, lessening the budget deficit. This has led to increased control in foreign loans and improved repayment of foreign debts. Foreign investment has increased due to reduction of foreign debt thus resulting into increased economic growth (from Philippines Economic ...Download file to see next pagesRead More
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