Socioeconomic Report 2002

In 2002, the Philippine economy showed its firmest growth in the post-Asian crisis period. Building on the strengthsand resiliency established through various structural reforms in the past, all production sectors grew robustly in 2002. Industry andservices surpassed the previous year’s gains and agriculture bucked the effects of a mild El Niño. Growth of private investmentspersistently recovered throughout the year.

Growth was supported by policies that encouraged healthy domestic and foreign demand. A low inflationary environment, induced by prudent monetary policy operating under an inflation-targeting framework, boosted private consumption. Policies which have liberalized trade within the Association of South East Asian Nations (ASEAN), and with other Asian neighbors contributed to the rebound of exports.