of the peso and falls in the stock market. But the extent it was affected initially was not as severe as that of some of its Asian neighbors. This was largely due to the fiscal conservatism of the government, partly as a result of decades of monitoring and fiscal supervision from the International Monetary Fund (IMF), in comparison to the massive spending of its neighbors on the rapid acceleration of economic growth. There have been signs of progress since. In 2004, the economy experienced 6.4% GDP growth and 7.1% in 2007, its fastest pace of growth in three decades. Yet average annual GDP growth per capita for the period 1966–2007 still stands at 1.45% in comparison to an average of 5.96% for the East Asia and the Pacific region as a whole and the daily income for 45% of the population of the Philippines remains less than $2. Despite enjoying sustained economic growth during the first decade of the 21st century, as of 2010, the country's economy remains smaller than those of its Southeast Asian neighbors Indonesia, Thailand, Malaysia, and Singapore in terms of GDP and GDP per capita (nominal).
Other incongruities and challenges exist. The economy is heavily reliant on remittances which surpass foreign direct investment as a source of foreign currency. Regional development is uneven with Luzon—Metro Manila in particular—gaining most of the new economic growth at the expense of the other regions, although the government has taken steps to distribute economic growth by promoting investment in other areas of the country. Despite constraints, service industries such as tourism and business process outsourcing have been identified as areas with some of the best opportunities for growth for the country. Goldman Sachs includes the country in its list of the "Next Eleven" economies. But China and India have emerged as major economic competitors.
Goldman Sachs estimates that by the year 2050, it will be the 14 largest economy in the world and one in its
