Economy of Manila

Philippine manufacturing is highly concentrated in or near metropolitan Manila, with area firms employing more than one-half the country's manufacturing industry workers.

This is due to a number of factors, including Manila's role as the principal port of entry for imported raw materials and other goods; the city's excellent harbor, which is deep and sheltered; the existence of a large local market; a pool of skilled labor; and the presence of the nation's major financial, governmental, and cultural institutions.

Manufactures include textiles, clothing, and electronic goods; the latter two are the nation's leading exports.

Watches, iron and steel, food and beverages, cigars and cigarettes, leather goods, and shoes are also manufactured here.

Additionally, local entrepreneurs (often with foreign financial partners) continue to process primary commodities for export, including plywood, refined sugar, copra, and coconut oil.

Manila is also the major destination for tourists who visit the Philippines.

Numerous points of interest in the city attract about 1 million visitors annually from all over the world.

Many of Manila's tourist sites are found in the old downtown area and along Roxas Boulevard, which parallels Manila Bay.

A rail system connects Manila with the city of Legaspi on the Bicol Peninsula in southern Luzon and extends north to San Fernando in La Union Province.

A light rail transit system known as Metrorail was opened in Manila in 1985 to help reduce traffic congestion.

Approximately 250,000 passengers are served daily by Metrorail.

Other major modes of transportation include buses; taxis; pedicabs; horse-drawn carriages; and jeepneys, brightly-colored jeeps often outfitted with tassels and decorative horns and mirrors.

The inexpensive jeepneys transport about one-third of the city's commuter traffic.

The Manila International Airport, located in Pasay, accounts for about two-fifths of the nation's total passenger traffic.

Manila's population and economy are often disturbed by natural disasters, as the area lies astride the so-called Ring of Fire, an area in the Pacific where earthquakes and volcanic activity are common.

Two well-known volcanoes that have been active in recent years, Mount Pinatubo and Taal Volcano, are each about 80 km (about 50 mi) from Manila.

The city lies within the typhoon belt and thus destructive storms are frequent, often causing flooding and loss of life.