The Philippine economy follows the prescription of liberal open markets, privatization of most industries and services, and membership of the World Trade Organization. By traditional measures of growth, the economy has been reasonably successful, especially in recent years. Unemployment is officially reported as less than 8%, although underemployment accounts for a further 20%. However, free trade rules may have undermined domestic food production to the extent that the Philippines are now the world's biggest importer of rice. As the crisis of sharply rising food prices takes hold, the government was unable to buy its required supplies of rice during the first quarter of 2008, the consequences of which remain uncertain.
As many as 8 million Filipinos are believed to be working abroad, one million having left in 2006 alone. Painful and often damaging family dislocation is the price paid for overseas remittances that are the largest source of foreign currency for the Philippine economy, contributing an estimated US$ 12.8 billion in 2006, almost 10% of GDP.
