The Philippine economy, based primarily on a mixture of agriculture, light industry, and supporting services, deteriorated owing to the 1997 Asian financial crisis. Recovery has been slow, and global economic difficulties, compounded by the war on terrorism, have also affected it; yet the projected GDP growth for 2004 is around 5 percent. Unemployment remains at over 10 percent, however, and the budget deficit has escalated to the equivalent of U.S. $4 billion