According from the Department of Trade and Industry’s (DTI) quarterly report, in the second quarter of 2022, the Philippine Gross Domestic Product (GDP) increased by 7.4 percent. After the first quarter of 2021, this is the sixth straight quarterly rise. Despite experiencing high prices, private consumption climbed 8.6% in the second quarter, compared to 10.0% in the first quarter. Despite lighter Covid-19 limitations, the quarter’s high inflation impacted consumer expenditure. In contrast, public expenditure increased by 11.1% in Q2 due to a comeback in June following the repeal of the pre-election spending ban (Q1: +3.6% year on year). Meanwhile, fixed investment growth increased to 13.2% in Q2 from 11.8% in the previous quarter. In line with this, it is reasonable to recognize PH industries with the highest recorded income for 2022
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As data shows, the industrial sector has contributed a significant and consistent contribution to the Philippines’ GDP over the years, peaking at almost 45% in the 1980s and falling to less than 28% in 2021. This industry still employs approximately one-fifth of the workers in the country. The Philippine government is modernizing the country’s infrastructure in order to attract foreign direct investment (FDI). The government has established a number of economic zones, which have attracted a large number of foreign enterprises. According to rumors, several corporations are planning to shift manufacturing from China, their traditional base, to the Philippines and adjacent Southeast Asian nations. These steps will aid in the long-term expansion of the manufacturing sector.
Philippines’ Economy During the Pandemic
The Pandemic had caused disruptions spurned by the COVID-19 outbreak have sent the Philippine economy into its greatest slump in more than two decades. The government’s exceptional policy measures have been critical to consumers, companies, and financial institutions. However, further governmental assistance and a speedier vaccination implementation are required for the Philippine economy to guarantee a more stable rebound for the years to come.
Furthermore, Domestic demand collapsed across the borders of the country, but it was more severe in industries that need physical touch and intimate participation of face to face. The unemployment rate remained high in October, at 8.7 percent, albeit substantially lower than in April, when containment measures were initially implemented. Despite significant supply interruptions caused by the pandemic and a succession of powerful typhoons, inflation had increased and stayed above the average, staying within the 2-4 percent range.
Philippines’ Economic Policy towards Recovery
Monetary and regulatory policies have been rapid and successful in alleviating monetary conditions and providing enough liquidity in the banking sector. More efforts should be made to improve the effectiveness of monetary transmission and to promote credit expansion. The Bangko Sentral ng Pilipinas (BSP) should work with other government agencies to provide banks with stronger incentives to lend to the business sector, particularly MSMEs.
Furthermore, structural measures and changes are required to strengthen the economy’s resilience to shocks and assist the transition to the post-pandemic new normal. The government’s initiatives to encourage digitization, invest in infrastructure, and enhance the “doing business” environment will make the process easier.
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Now, while many companies, particularly those involving travel, have suffered the most from the consequences of the pandemic and quarantine, on the other side of our economic landscape, certain industries, particularly the medical profession, have reaped the benefits of the scenario. As we are now recovering from our economic downfall, this article will highlight the industries in the Philippines with the most income earned in 2022.
PH Industries with the Highest Income in 2022
In the first half, services production increased by 8.7%, indicating a broad-based rise throughout the sector. This contributed to a consistent growth in overall employment, with an extra 5.7 million jobs created between July 2021 and July 2022, with two-thirds of them in services, mostly in wholesale and retail trade.
According to DTI, Public administration and defense; compulsory social activities, 9.1 percent; professional and business services, 7.7 percent; other services, 39.5 percent; financial and insurance activities, 4.2 percent; information and communication, 10.7 percent; accommodation and food service activities, 29.9 percent; education, 5.3 percent; real estate and ownership of dwellings, 3.9 percent; and human health and social services, 3.9 percent. In the second quarter of 2022, services continued to account for 61.1 percent of total GDP.
Healthcare will continue to be a one of the highest income earning industries to follow in the Philippines 2022. Healthcare vocations are predicted to rise 16% between 2020 and 2030, above the 15% growth rate forecasted last year. As populations age and demand for healthcare services increases, the industry will add around 2.6 million new employment. In healthcare, like in many other businesses, the more education you have, the more money you may make. Jobs like home health aide and veterinary assistant often demand a high school education or equivalent if you are new to the healthcare profession.
Although the Philippine healthcare system has flaws, it is nevertheless of good quality by developing-country standards, especially if you go to a private provider. Working in healthcare may be a rewarding and well-paying profession.
Wholesale and Retail
In terms of sales, the retail market in the Philippines is currently at its peak. DTI also reported that wholesale and retail had been one of the factors that pushed GDP further. The market in the Philippines has been closely studied and is predicted to increase by $70.67 billion between 2022 and 2026, at a CAGR of roughly 11.68%. The research covers the market size, growth, analysis, issues, challenges, trends, and vendor analysis for around 25 vendors. The material also includes current research on the present market, forthcoming trends, and the market environment to fully manage the retail business in the Philippines.
One of the things that people missed during the peak of the pandemic is to roam around wherever they want. But due to quarantine restrictions it has been a different case, which is why as we go back to our old normal, the transportation had showed an increase in income. From 2012 to 2022, the Philippines’ CPI Transportation averaged 103.51 points, with a peak of 133.20 points in July of 2022 and a low of 91.90 points in February of 2016. In addition, there are a lot of on-going transportation projects which will surely benefit a lot of commuters in the near future.
Have you ever noticed your monthly invoice for electricity bills had increased, this is due to the power crisis being expereinced by the industry. Accordingly, Quezon Power Managing Director Frank Thiel, the Philippines may face a power shortage in the summer of next year if no new supply enters the market despite rising demand. A 660-megawatt (MW) supercritical power plant in Northern Luzon has been added to the country’s energy mix, but no new power plants are projected to enter the market next year.
Following the law of economics, as supplies fell prices increases hence providing more revenues for the industry.
Overall, The High Tech industry is anticipated to enjoy the greatest rise in median wage increment from 5% to 5.8% in 2022, followed by Retail & Wholesale (up 0.7% to 6%) and Consumer Goods (0.2% increase to 5.2%). Energy, Life Sciences, Retail & Wholesale, and Shared Services reported the biggest wage increases of 6% in 2022, while Chemical, Manufacturing, and Non-Financial Services reported the lowest (5%).