The Philippines stands as one of the fastest-growing economies in Southeast Asia, showcasing a resilient recovery in the aftermath of the pandemic. The country achieved a remarkable gross domestic product (GDP) growth rate of 7.6% in 2022, the fastest growth rate in over four decades. While the first half of 2023 saw some moderation with a GDP of 5.3%, the economy is poised for a renewed upswing with an expected growth rate of up to 6% next year, according to the International Monetary Fund (IMF).
Bangko Sentral ng Pilipinas, the central bank of the Philippines, has acted decisively in raising interest rates in the face of inflationary pressures, which has helped maintain economic stability. Against this backdrop, IMF anticipates faster economic growth in the upcoming year, driven by increased government spending. Notably, service exports are expected to perform well, particularly in the electronics sector, further fueling economic expansion.
Since the post-pandemic reopening of the economy, trade activities and volume have exhibited steady growth, contributing to the Philippines’ economic recovery. Manila-based International Container Terminal Services, Inc. (ICTSI) had a role in this recovery as a major player in the global value chain, providing value-added services and facilitating the free flow of goods between nations and regions.
The global port operator is investing PHP15 billion (US$263 million) to expand the Manila International Container Terminal (MICT). This expansion project will increase the terminal’s cargo handling capacity, enabling it to accommodate larger container ships and the associated increase in cargo volume. Upon completion, the MICT is expected to have an annual capacity of 3.5 million TEU, solidifying its position as the largest international gateway in the Philippines.
The Philippines remains an attractive destination for investment, offering a combination of incentives, tax breaks and well-established legal frameworks designed to protect the interests of foreign investors. President Ferdinand R. Marcos Jr. emphasizes that the Philippines is “a nation on the rise, ready to collaborate with partners who see the potential we hold.”
For instance, the recent collaboration between the Philippines’ Federal Land, Inc. and Japan’s Nomura Real Estate Development Co., Ltd. is set to redefine real estate standards, creating a dynamic new player on the global real estate scene. The synergistic alliance, dubbed Federal Land NRE Global Inc. (FNG), takes advantage of Federal Land’s legacy of innovation and ingenuity enhanced by Nomura’s celebrated history of excellence and attention to detail.
Banking on a considerable capital investment of approximately PHP48 billion (US$844 million), FNG is poised to launch its first two pioneering projects, further solidifying this alliance’s significance on the international stage. These ambitious developments are expected to lead to substantial yet sustainable economic opportunities. With the goal of generating around 6,000 jobs within its initial operational years, FNG will be contributing to the country’s growth momentum in a major way.
Another real estate player capitalizing on the heightened demand for both residential and commercial properties is Vista Land & Lifescapes, Inc., one of the leading integrated property developers in the Philippines. The company has launched a portfolio of projects throughout the country valued at PHP24.3 billion (US$427 million), more than the previous year.
Vista Land reports a consistent and robust demand for its residential developments, encompassing both horizontal and vertical segments. Notably, this demand comes from overseas Filipino buyers, constituting about 60% of the company’s total sales. Its most ambitious project to date is Villar City, a sprawling 3,500-hectare mixed-use development that spans 15 cities and towns in Metro Manila and Cavite.
Meanwhile, the country’s tech ecosystem is thriving, characterized by a vibrant startup culture and advancements in e-commerce, fintech and digital services.
The Philippines’ leading telco, Globe, has trans formed from a traditional telecommunications entity into a technology powerhouse, unveiling a broad range of innovative digital solutions aimed at elevating the quality of life for Filipinos. For instance, Globe has rolled out game-changing digital solutions such as finance app GCash, which has transformed the way Filipinos make financial transactions, from payments and savings to loans and investing.
The company is also revolutionizing healthcare with its healthtech offering, KonsultaMD. This digital health superapp allows patients to consult with a vast network of 1,000 medical professionals across 40 specializations, offering roundthe-clock access to doctor consultations, medicine delivery, at-home diagnostics and nursing care.
Sustainable Energy Future
The Philippines is also aggressively pursuing the expansion of renewable energy, aiming to achieve a 35% share in the power mix by 2030, and consequently up to 50% by 2040. To achieve these targets, the government has opened the doors to 100% foreign ownership of renewable energy projects in the country, spanning exploration, development and the utilization of solar, wind, hydro and ocean energy sources.
This forward-looking approach sets the stage for a sustainable and eco-friendly energy future, contributing to the nation’s growth and environmental well-being.