PETpla.net Insider 11 / 2020

EDITOUR PETplanet Insider Vol. 21 No. 11/20 www.petpla.net 24 The Philippines With more than 7,600 islands (the number increased by more than 500 a few years ago with the help of modern radar technology), the Philippines cover a total area of nearly 340,000km 2 , of which 300,000km 2 is land mass. It extends 1,127km and 1,850km from north to south and east to west respec- tively. There are around 880 inhabited islands. 81 provinces grouped together in 17 regions are divided into three archipelagos: Luzon in the north and west, Visayas in the centre and Mind- anao in the south. Luzon and Mindanao are the two largest island groups cover- ing around 110,000km 2 and 97,500km 2 , respectively. The capital is Manila. To the north, the Philippines, which are completely surrounded by water, are connected to the Luzon waterway with Taiwan to the north, to the South China Sea to the west and Vietnam further west, the Sulu Sea with Borneo to the south-west, the Celebes Sea with Sulawesi, Indonesia, to the south and the Philippine Sea to the east. The country’s geographical loca- tion means that it is part of the Pacific Ring of Fire, which has repeatedly led to volcanic eruptions and earthquakes. A tropical climate provides the country with an average temperature of 26.5°C, accompanied by regular and sometimes violent tropical storms and typhoons. Changes linked to climate change have been predicted for the region for some time, with the Philippines high in the world rankings for natural disasters which have been caused as a result. The population of the Philippines last year was just over 108 million, most of whom live on the northern islands, with the majority residing in Luzon. It is estimated that Manila’s metropolitan region will be home to just under 14 million people this year. Sugar tax, Covid-19 and modest PET growth The Philippines drinks’ market In 2017, Manila was the starting point for our visit to Coca-Cola’s Philippine subsidiary and affiliated preform supplier, Alpla, at Canlubang in the south. Rodrigo Duterte had become the country’s President only a year earlier and the actions of his administration have resulted in direct foreign investment falling below expectations, while the number of unemployed and people in poverty has remained consistently high. And yet, annual GDP grew by 6.4% between 2010 and 2017, which is nearly 2% more than during the previous decade. Although the Asian Development Bank is expecting a massive 7.3% slump in GDP growth during this Covid-dominated year, the country’s economy should be back on track next year with a forecast of 6.5%. Here, we examine what the current economic situation, the tax on sugary drinks introduced in 2018 and the coronavirus pandemic mean for the drinks’ industry. Tour Sponsors: Macro-economic data Philippines 2017 2018 2019 Population (millions) 105.17 106.65 108.12 Population growth p.a. 1.5% 1.4% 1.4% GDP (current, in billions) 328.5 346.8 376.8 GDP growth rate 6.9% 6.3% 6% GDP per capita (current) in US$ 54,066 57,396 54,907 Imports (goods and services, in billions US$) 126.8 145.5 151.7 Export (goods and services, in billions US$) 97.1 104.8 106.8 National debt of GDP 42.1% 41.8% 41.5% Unemployment rate 2.6% 2.3% 2.2% Inflation 2.6% 5.2% 2.5% Beautiful beaches and bays attract tour- ists from all over the world.