A weak manufacturing base

The Philippine economy, despite a robust expansion last year, lacks the feature that normally goes with such growth. The economy is driven by consumption, earnings from tourism and business process outsourcing companies and remittances from migrant Filipino workers. But the contribution of the manufacturing sector, normally the growth driver in industrialized and emerging economies, is not conspicuous. It is no longer the main engine of growth and its weak performance provided little to boost employment and investment. The state-run Philippine Institute for Development Studies has urged the government to implement industrial policy reforms to transform the manufacturing sector into a key player in lifting growth, attracting investments and providing employment.