2026-07-01http://hdl.handle.net/123456789/417786Major fiscal adjustment during 2005-06, aided by abundant global liquidity, has turned around market sentiment on the Philippines. Stocks, the peso and reserves have all risen significantly, as have foreign direct investment and portfolio inflows, while interest costs and spreads for government borrowing have fallen along with inflation. Real GDP grew by 5.4 percent in 2006 and real GNP by 6.2 percent, marking the first time that three consecutive years of growth of 5 or more percent was recorded since the 1970s. Strong growth in business process outsourcing, electronics exports and remittance-driven consumption served as important props for higher growth. This paper includes the following headings: recent economic developments; how robust is present growth; invigorating growth, enhancing its impact; and maximizing the benefits of growth for the poor.application/pdftext/plainCC BY 3.0 IGOhttp://creativecommons.org/licenses/by/3.0/igo/World BankACCOUNTINGAGRICULTURAL OUTPUTAGRICULTUREANNUAL RATEAUDITINGAVERAGE CAPACITYAVERAGE CAPACITY UTILIZATIONBALANCE OF PAYMENTSBALANCE SHEETSBANK DEPOSITSBANK LENDINGBANKING SECTORBANKING SUPERVISIONBANKING SYSTEMBANKSBASE YEARBENCHMARKBIDDINGBONDSBUDGET DEFICITBUDGET FRAMEWORKBUDGET SUPPORTCAPACITY UTILIZATIONCAPITAL ADEQUACYCAPITAL BASECAPITAL INFLOWSCAPITAL MARKETSCENTRAL BANKCOLLUSIONCOMMERCIAL BANKSCOMMERCIAL BORROWINGCOMMODITIESCOMPETITIVENESSCORPORATE GOVERNANCECORPORATE PROFITSDEBTDEBT SERVICEDECISION MAKINGDEFICIT REDUCTIONDEFICITSDEREGULATIONDOMESTIC INVESTMENTECONOMIC GROWTHEDUCATIONAL ACHIEVEMENTELECTRICITYEMERGING MARKETSEXCHANGE RATEEXCISE TAXESEXPENDITURESEXPORT GROWTHEXPORTSEXTERNAL DEBTFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL POSITIONFINANCIAL SECTORFISCAL ADJUSTMENTFISCAL CONSTRAINTFISCAL CONSTRAINTSFISCAL POLICYFISCAL POSITIONFISCAL REFORMFISCAL REFORMSFISCAL TARGETSFOREIGN BANKSFOREIGN CAPITALFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTGNPGOVERNMENT DEBTGOVERNMENT DEFICITGOVERNMENT SECURITIESGROSS DOMESTIC PRODUCTGROSS NATIONAL PRODUCTGROSS NATIONAL SAVINGSGROWTH POTENTIALHUMAN CAPITALINCOMEINCOME TAXESINFLATIONINFRASTRUCTURE PROJECTSINTEREST COSTSINTEREST PAYMENTSINTEREST RATESINTERNATIONAL RESERVESINVESTMENT CLIMATEINVESTMENT RATESLABOR COSTSLAWSLEGAL PROTECTIONLIQUIDITYLOCAL CURRENCYLOCAL GOVERNMENTSM3MACROECONOMIC INSTABILITYMACROECONOMIC PERFORMANCEMARGINAL COSTMARGINAL PRODUCTMARGINAL PRODUCTIVITYMARGINAL REVENUEMARKET ENTRYMARKET FORCESMEDICAL SERVICESMONETARY POLICYNASH EQUILIBRIUMNATIONAL AUDITNATIONAL GOVERNMENTNATIONAL STATISTICSNATIONAL STATISTICS OFFICENET BORROWINGOVERNIGHT RATESOWNERSHIP STRUCTUREPACIFIC REGIONPAYMENT SYSTEMPER CAPITA INCOMEPERSONAL INCOMEPERSONAL INCOME TAXESPORTFOLIOPOVERTY REDUCTIONPRIVATE CAPITALPRIVATE CONSUMPTIONPRIVATE INVESTMENTPRIVATE SECTORPRIVATIZATIONPROFITABILITYPROGRAMSPUBLICPUBLIC CONSUMPTIONPUBLIC DEBTPUBLIC DEFICITSPUBLIC EXPENDITUREPUBLIC EXPENDITURE MANAGEMENTPUBLIC INFRASTRUCTUREPUBLIC INVESTMENTPUBLIC POLICIESPUBLIC RESOURCESPUBLIC SECTORPUBLIC SECTOR BORROWINGPUBLIC SECTOR BORROWING REQUIREMENTSPUBLIC SECTOR DEBTPUBLIC SECTOR DEFICITPUBLIC SPENDINGREAL EXCHANGE RATEREAL GDPREAL GROWTHREFORM AGENDAREFORM PRIORITIESREGULATORY CAPTUREREGULATORY FRAMEWORKREGULATORY POLICIESREGULATORY POLICYREGULATORY REFORMREVENUE INCREASESRISK FACTORSRISK MANAGEMENTSOCIAL SECURITYSOCIAL SECURITY SYSTEMSTRUCTURAL REFORMTAXTAX ADMINISTRATIONTAX BASETAX COLLECTIONTAX EFFORTTAX EVASIONTAX POLICYTAX RATETAX REVENUETAXPAYERSTELECOMMUNICATIONSTELECOMMUNICATIONS REFORMTOTAL FACTOR PRODUCTIVITYTOTAL REVENUETOTAL SPENDINGTRANSACTIONS COSTSTRANSPORTTREASURYTREASURY BILLUNCERTAINTYUNEMPLOYMENTUNEMPLOYMENT RATEWAGE RATESWAGES