The Philippines has achieved reasonable economic growth of about four percent per annum over the past two years in spite of adverse global developments (e.g., slow world economic growth, depressed demand for electronics, the war in Iraq, and SARS), sporadic conflict in Mindanao, political uncertainty, and investor concerns regarding fiscal sustainability. Interestingly, this growth has been geographically widespread with agriculture and service sector growth being particularly prominent. However, the country's high population growth rate translates to a per capita income of only two percent per annum. As such, poverty reduction has been modest for the period.
