Philippines profile

Demography and Health

The Philippines is home to about 115.8 million people in 2024, placing it roughly 14th in the world by population. This sizeable and young population provides a potential demographic dividend, but it also implies sustained demand for jobs, schooling, health services, and social protection. The birth rate stands at 16.0 per 1,000 people (2023) while the crude death rate is 6.24 per 1,000, signaling ongoing natural population growth but a gradual shift in age structure as life expectancy reaches 69.8 years (2023). The under-5 mortality rate of 26.9 per 1,000 live births points to notable child health challenges that demand continued investment in maternal and child health, vaccination, and nutrition. Poverty remains a central policy concern, with 15.5% of the population living on national poverty lines in 2023, indicating that economic growth has not yet fully translated into broad-based poverty reduction. On the health system front, current health expenditure is 5.11% of GDP in 2023, with a government health expenditure per capita (PPP) of 241 international dollars, ranking among the higher levels in the region, suggesting a policy emphasis on public health financing. Yet health indicators such as life expectancy and access to care reflect mixed outcomes; hospital beds average 0.96 per 1,000 people (2021) and physicians average 0.786 per 1,000 (2021), underscoring persistent gaps in health infrastructure and workforce. Internet adoption is strong, with 83.8% of the population online in 2023, which supports health information access and telemedicine potential, even as net migration of about 160,000 people in 2024 signals ongoing out-migration that can affect domestic labor supply and care provision.

Economy

The Philippines presents a lower-middle-income economy profile with a GDP per capita of about 3,985 current US dollars in 2024 and a GDP per capita on a purchasing power parity basis of roughly 11,794 international dollars. This indicates a sizable population base paired with modest income levels, offering room for productivity-led growth if investment in skills, technology, and governance is sustained. Inflation stands at 3.21% in 2024, consistent with price stability in many peers, while unemployment was 2.6% in 2022, suggesting a relatively tight labor market given data lags; structural unemployment and underemployment, however, can still be concerns in a young, dynamic economy. Poverty sits at 15.5% (2023), highlighting persistent inequality and the need for inclusive growth strategies. External sector dynamics show exports of goods and services at 25.8% of GDP (2024) and imports at 40.1% of GDP (2024), indicating a trade pattern with substantial import needs, including capital goods and energy. The current account is negative at -3.79% of GDP (2024), which reflects a trade-related or investment-funded deficit that requires durable financing and competitive export performance to stabilize. Foreign direct investment net inflows are 1.93% of GDP (2024), pointing to moderate global investor confidence but room to improve. The country also records strong high-technology exports (about 37.1 billion USD in 2023) and a notable patent activity among residents, signaling capability in knowledge-intensive sectors. Domestic health expenditure per capita and robust public health spending emphasize social investment as a pillar of development.

Trade and Investment

The Philippines shows a relatively open economy with a reliance on trade, where exports of goods and services represent 25.8% of GDP in 2024 and imports constitute 40.1% of GDP, underscoring a high import dependence for consumer goods and intermediate inputs. This openness supports growth but also exposes the economy to external shocks and currency risks. The logistics framework is rated with a Logistics Performance Index score of 3.2 (2022), placing it in a competitive but still improvable tier for trade and transport efficiency, which matters for competitiveness in manufacturing and services. Foreign direct investment inflows amount to 1.93% of GDP (2024), indicating moderate foreign participation in the economy; efforts to improve business climate, ease of doing business, and regulatory predictability could help attract higher-quality investment. The country demonstrates strength in high-technology exports (about 37.1 billion USD in 2023), and residents filed around 490 patent applications in 2021, signaling ongoing innovation activity. The combination of a young workforce, digital adoption (83.8% internet usage in 2023), and a growing services sector supports opportunities in IT-enabled services, business process outsourcing, and light manufacturing, while the current account deficit and substantial import share suggest policy focus on productivity gains and diversified export growth.

Governance and Institutions

The governance indicators present a mixed picture. Political stability and absence of violence/terrorism score -0.566 (2023), with a rank of 149, reflect chronic governance and security risks that can affect investment decisions and policy certainty. Regulatory quality sits at 0.164 (2023) and government effectiveness at 0.154 (2023), suggesting some capacity to implement reforms and enforce regulations, albeit with room for improvement. The rule of law is negative at -0.418 and control of corruption at -0.538, signaling governance and anti-corruption challenges that can hinder business confidence and long-term development. Taken together, these indicators imply that while institutions have strengths in service delivery and policy design, credible improvements in law enforcement, judicial independence, and anti-corruption measures are critical to sustaining investor trust and inclusive growth.

Infrastructure and Technology

Infrastructure and technology readiness in the Philippines shows a nuanced profile. Connectivity is high by global standards, with 83.8% of the population using the Internet in 2023, enabling digital service delivery, e-government, and online commerce. The country’s logistics capacity is solid but not leading, as indicated by a Logistics Performance Index of 3.2 (2022) and a relatively favorable but still improvable transport and trade infrastructure environment. Human capital infrastructure is also visible in health capacity: 0.96 hospital beds per 1,000 people (2021) and 0.786 physicians per 1,000 (2021), highlighting ongoing needs to expand health system capacity in tandem with expanding demand. High-technology exports are substantial, totaling over 37 billion USD in 2023, and residents filed 490 patent applications in 2021, signaling a developing but improving domestic innovation ecosystem. Energy and climate considerations show renewable energy accounting for 28% of total final energy consumption (2021), indicating a meaningful shift toward cleaner power while traditional fuels still matter. The Global Logistics and digital connectivity groundwork, combined with a growing tech orientation, positions the Philippines to leverage digital services, outsourcing, and tech-enabled manufacturing, though sustained investments in physical and human capital infrastructure are essential to maximize these advantages.

Environment and Sustainability

Environmental and sustainability indicators show a mixed but cautiously positive trajectory. Renewable energy consumption accounts for 28% of total final energy consumption (2021), signaling a movement toward cleaner energy sources, though fossil dependencies remain relevant. Total greenhouse gas emissions per capita exclude LULUCF at 2.23 t CO2e per person (2023), indicating relatively low per-capita emissions compared with many peers, but cumulative emissions remain a concern given population size and development needs. Water resources stress is evident, with freshwater withdrawal at 27.2% of available resources (2021), reflecting medium water scarcity risk that can intensify with climate variability and growing demand. The data imply a need for continued investment in water management, climate resilience, and sustainable urban planning, particularly as development and urbanization accelerate. Taken together, the Philippines shows potential to deepen its renewable energy share and build resilience against climate threats, while maintaining attention to water security and prudent environmental governance.