A BROAD RECOVERY IN THE
PHILIPPINES.
by MEDIA CONTACT RESOURCES, INC.
The Philippines had a good year in 2004. A recent report in The
Philippine Star said that previously issued Government estimates of
growth between 4.9 percent and 5.8 percent were wrong. The economy
actually grew 6.1 percent, and the Government of President Gloria Arroyo
couldn't be happier. Mrs. Arroyo, Vice President under Joseph
Estrada who was elected in 1998, succeeded to the Presidency in 2001
after Estrada was impeached and subsequently driven from office. Mrs.
Arroyo was elected to the presidency in May of 2004 under a cloud of
charges of election irregularities, and the economic news can be seen as
an endorsement of her policies.
The 6.1 percent growth rate is the highest since 1996. Many sectors
of the economy contributed to the strong growth. Particularly important
was the contribution of services, long a major component of the national
account structure. Something of a surprise was the strength of
agriculture. Following destructive storms during 2004, the outlook for
agricultural productivity was not optimistic. But generally the weather
favored good growing seasons, and the result was a productive year for
agriculture.
This, in turn, meant that consumer spending on the part of the
country's rural population was stronger than in previous years.
Added to the contributions of young professionals in urban centers,
particularly those who work in the growing call center market, consumer
spending also grew. Call centers in the Philippines have been a source
of jobs for educated professionals, and the number of jobs is growing
rapidly. Call center "seats" the industry jargon for the
stations manned by agents grew from 1000 in the year 2000 to about
20,000 in 2003 and to 35,000 in 2004. Total employment in 2004 was
approximately 56,000 agents. These professionals are an important
consumer market segment because their incomes are higher than the rest
of the population. And because their educational attainment is also
higher, they have more sophisticated tastes.
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NOTE: All illustrations and photos have been removed from this article.