Philippines

Area

The total surface area of the Philippines is 300,000 square kilometers:

• Land area: 298,170 sq. km
• Land area: 298,170 sq. km

This makes the Philippines the 7th largest country in Southeast Asia. The majority of its land (282,120 sq. km) is rural, while only 12,151 sq. km is urban.

Forest Cover

As of 2021, 24.2% of the total land area is covered by forests. The implementation of the National Greening Program has contributed to the increasing forest coverage. However, deforestation remains a major concern, primarily due to agricultural expansion.

Temperature and Climate

The Philippines has a humid equatorial climate, characterized by:

• High temperatures & humidity due to warm trade winds, sea surface temperatures, and vegetative cover
• Heavy rainfall, varying geographically with an annual average of 960 mm
• Seasonal monsoons:
  • Southwest Monsoon (Habagat) – brings heavy rainfall from June to September, mainly affecting the western part of the country
  • Northeast Monsoon (Amihan) – affects the eastern regions from October to March
• El Niño Southern Oscillation (ENSO) – causes periodic droughts
• Hottest months: April & May
• Coldest months: December to February

Agricultural Land Area

According to the World Bank, the agricultural land area in the Philippines has been increasing.

• Total agricultural land (2021): 126,830 sq. km (42.5% of the total land area)
• Arable land: 55,900 sq. km, primarily used for rice and corn production

Race and Ethnicity

According to the 2020 Census by the Philippine Statistics Authority (PSA), Tagalog is the most commonly reported ethnicity, making up 26% of the population. Other major ethnic groups include Bisaya, Ilocano, Cebuano, Ilonggo, Bikol, Waray, Kapampangan, Maguindanao, and Pangasinan. Additionally:

• 7.6% of the population are classified as Indigenous Peoples (IPs) by the National Commission on Indigenous People (NCIP).
• 5.0% identify as Muslims, as recognized by the National Commission on Muslim Filipinos (NCMF).
• 1.5% are both IPs and Muslims.
• 0.2% belong to foreign ethnicities.

Religion

The Philippines is the only Christian nation in Asia. Based on PSA’s 2020 Census, religious affiliations in the country are as follows:

• 78.8% – Roman Catholics
• 6.4% – Islam
• 2.6% – Iglesia ni Cristo

Population

In 2022, the Philippines had a total population of 115,559,009, making it the second most populated country in Southeast Asia after Indonesia.

• 48% of the population resides in urban areas, while 52% are in rural areas.
• The annual population growth rate in 2022 was 1.5%, the lowest since 1947.

Experts attribute the slow growth rate to factors such as family planning preferences, domestic violence issues, limited healthcare access, and economic challenges.

Economic Profile

The Philippines follows a mixed economic system, combining a market economy with government planning. The country relies on sectors such as:

• Agriculture
• Manufacturing
• Services
• Mining
• Overseas remittances

Gross Domestic Product (GDP)

The Philippine economy was significantly affected by the COVID-19 pandemic in 2020, but it rebounded strongly.

• In 2022, the economy grew by 7.6%, making it one of the top five fastest-growing emerging markets globally.
• The country’s GDP reached US$ 404.35 billion, with a per capita GDP of US$ 3,499.107.
• The Philippines ranked 40th globally in terms of GDP size.

Sector Contributions to GDP (2022):

• Services Sector – Highest contributor
• Industry Sector – Significant growth
• Agriculture Sector – Lowest contributor (9.5% of total GDP)

Employment

The Philippine labor force in 2022 reached 47.87 million.

Unemployment rate: 5.4% (PSA, 2022)

Employment by sector (May 2024, PSA):

• 58.8% – Services sector
• 24.2% – Agricultural sector
• 16.9% – Industry sector

Agricultural Workforce

24% of the total labor force was employed in agriculture.
The sector has been declining due to an aging farming population, land conversion, and mechanization.

Inflation

The 2022 inflation rate was 5.8%, up 3.9% from the previous year.
Inflation was driven by rising global oil prices, increasing commodity costs, and peso depreciation.
Low-income households were most affected by inflationary pressures.

Agricultural Products (2022):

• Sugarcane (23.45 million tons – highest production volume)
• Rice
• Coconut

Natural Resources

The Philippines is rich in mineral resources, including:

• Nickel (11% of global production, second-largest producer after Indonesia)
• Gold
• Silver
• Iron Ore
• Oil

The country is also home to natural wonders, including Mayon Volcano and the Chocolate Hills, which were declared a National Geologic Monument by UNESCO in 1988.

Total Trade (2022):

• US$ 216.2 billion (total trade volume)
• US$ 58.2 billion (trade deficit – a 38% increase from 2021)

Imports (2022):

• Total imports: US$ 137.22 billion (up 17.4% from 2021)

Top Imported Products:

• Electronic products (23.9% of total imports)
• Wheat (US$ 1.58 billion in value)

Top Import Partners:

1. China (28.2%)
2. Indonesia
3. Japan

Exports (2022):

• The Philippines experienced negative growth in export sales.
• Electronic products remained the top export.
• Top Export Partners:

1. USA (12.47%)
2. Japan
3. China

Agricultural Exports:

• Total value: US$ 5.83 billion

Top Export Products:

• Coconut Oil (US$ 2.1 billion)
• Bananas (US$ 1.1 billion from 2.3 million tons produced)

Industry Profile

The industrial sector is one of the biggest economic contributors to the Philippines. The government’s industrialization strategy aims to increase local industry competitiveness and global positioning.

Major Industries in the Philippines:

Manufacturing

• The largest contributor to the industrial sector.
• Accounts for nearly 25% of GDP.
• Considered the backbone of long-term economic growth, employment, and innovation.

Mining & Quarrying

• The Philippines has one of the richest mineral deposits in the world.
• Although it contributes less to GDP, it remains vital for employment and industry supply chains.

Construction

• A key driver of economic growth due to its role in infrastructure development.
• Creates thousands of jobs, helping boost economic activity.

Food and Nutrition Security

According to the 2023 State of Food Security and Nutrition in the World report by the Food and Agriculture Organization (FAO), nearly 44.7% of the Philippine population experiences moderate to severe food insecurity. The country’s vulnerability to natural disasters, such as earthquakes and typhoons, is a major contributing factor.
Food security remains a critical goal in the Philippine agricultural sector due to its direct link to nutrition. Understanding the current food and nutrition status is essential for formulating effective solutions. Below are key nutrition indicators based on recent data:

• Undernourishment:

In 2021, the prevalence of undernourishment in the Philippines was 5%, according to the World Bank. While this figure has generally declined since 2001, it saw temporary increases between 2008 and 2011. Overall, efforts to combat undernourishment appear to be progressing.

• Stunting:

FAO data from 2022 estimates that 28.8% of children under age 5 in the Philippines are stunted. Although this rate has been gradually decreasing, stunting remains a significant public health issue.

• Overnutrition:

An estimated 4.6% of children under age 5 were overweight in 2022, according to FAO data. Unlike undernourishment, overnutrition has been increasing over time, highlighting the need for targeted interventions.

Other Key Issues

The Philippines faces challenges in local agricultural production, as reflected in its agricultural trade deficit in 2022. Insufficient domestic production and heavy reliance on imports underscore the need for comprehensive reforms. Some of the major concerns include:

• Food-Population Imbalance:

While population growth in the Philippines has slowed, it still contributes to a food supply gap due to the agriculture sector’s sluggish growth. Strengthening local food production is essential to reduce reliance on imports and ensure food security.

• Lack of Post-Harvest Facilities:

The absence of adequate storage and preservation facilities leads to high post-harvest losses. Many farmers are forced to sell their produce at lower prices to prevent spoilage, resulting in significant income losses.

• Limited Access to Credit:

Many Filipino farmers are smallholders who lack capital for production inputs. Due to barriers such as high transaction costs, distance, and complex loan processes, they often turn to informal lenders with high-interest rates. Improving access to formal credit is crucial for supporting small-scale farmers.

Key Agricultural Policies & Legislation

Despite persistent challenges, the Philippine government continues to implement policies aimed at strengthening the agricultural sector. Some recent key legislations include:

• Republic Act No. 11901 – Agriculture, Fisheries, and Rural Development Financing Enhancement Act (2022):

This law enhances financial accessibility for rural communities and farmers by strengthening agriculture and fisheries financing systems. It replaces RA 10000 (Agri-Agra Reform Credit Act of 2009) and aims to provide better financial support for farmers and rural development initiatives.

• Republic Act No. 11203 – Rice Tariffication Law (2019):

Commonly known as the Rice Tariffication Law (RTL), this act liberalizes rice trade by replacing quantitative import restrictions with tariffs. The goal is to ensure food security and make the agriculture sector more competitive while generating funds to support local farmers.

These policies, alongside other government initiatives, aim to modernize Philippine agriculture, boost productivity, and address the country’s food security challenges. However, effective implementation remains key to achieving lasting improvements.