Market Overview
The Philippines is one of the fastest growing economies in the world with an economic growth of 6.8% in 2016, and a remarkably positive GDP growth trajectory over the past decade projected at 7% by 2018. It is the second largest market in ASEAN with 103 million people, the 36th largest economy in the world (by nominal GDP) and is forecasted to become the 19th largest economy by 2030. The International Monetary Fund (IMF) recently predicted the sustained growth momentum in the country. Key drivers of growth are services sectors (i.e. real estate, manufacturing and tourism), strong domestic consumption, high remittances from Overseas Filipino Workers (OFWs) amounting to $26 billion annually and recently, the increased public spending of the government.
Opportunities
Strategically located in Southeast Asia, the Philippines is an ideal market for doing business particularly for companies that are looking to set up a regional operation. Seeing infrastructure as the bedrock of economic development, a huge opportunity lies within the infrastructure and construction sector. The government recently launched its ‘build, build, build’ campaign as it paves way towards the next six years’ “golden age of infrastructure”. British companies are encouraged to take advantage of these opportunities. Other strong sectors include information and communication technology, food and beverage (F&B), agribusiness, real estate, energy, manufacturing, pharmaceutical and healthcare.
Strengths
The Philippines takes pride in its competitive wages and highly trainable, educated and English-proficient workforce, which heightens the ease of doing business. It has strong domestic consumption and a growing middle class with high appetite for imported brands/ products. The government has a positive attitude on foreign investment/ importation, with 2016 FDI inflows amounting to $8 billion. Services sector remains the main engine of economic growth catering to international companies through its young and dynamic human capital.
For more information about opportunities in the Philippines, please contact Rona Diaz.
