
The Philippines, being a diverse and tourist-favorite country, has more to offer than meets the eye. It continues to attract investors due to its robust economic potential, infrastructure development, consistent remittance flows, and strong consumer sector. Beyond its famous tourist spots, the country has also been attracting investors from around the world.
With a developing economy and favorable government incentives, the country’s economy continues to expand despite certain risks and challenges.
Planning to invest in the Philippines? Here are some of the key factors that make the Philippine Economy progressive:
Promising Economic Growth – According to Goldman Sachs, the Philippines has been identified as one of the next emerging economies, highlighting its rapid economic growth and potential for higher investments. With a 6.0% growth in the year 2024 along with further improvements, the country continues to expand its strategy by targeting a stable economy.
Moreover, the Philippines has consistently outperformed its ASEAN neighboring countries in GDP growth, driven by key sectors like BPO, tourism, and manufacturing.
Natural Resources – The country is known for its abundant natural resources, including marine resources due to its archipelago geography, contributing to economic sustainability. This even allows for a wider tourist population that helps the Philippines protect its economy.
Remittance Flows – Due to the consistent inflow of remittances from Overseas Filipino Workers (OFWs), a $33.5 billion in 2023 has supported domestic consumption and provided economic stability, making the market attractive for investment.
Infrastructure Development – The government’s “Build Better More” project aims to invest between $16-$180 billion for improving infrastructure, which is expected to enhance logistics, trade capabilities, and the overall business environment.
Investment Access and Incentives – The Philippine market has been more accessible to investors through local brokers or exchange-traded funds (ETFs) that track the PSEi, empowering wider participation in growth opportunities.
The government of the Philippines offer various incentives in order to attract foreign investors, including tax holidays and exemptions, facilitated by agencies like the Board of Investments.
Young and Skilled Workforce – According to data, a median range of 24 and a literacy rate exceeding 94%, the county has a handful of skilled, English speaking labor pool.
Strategic Location – Positioned in the heart of Asia, the Philippines serves as a gateway to more than 600 million consumers in the ASEAN region, enhancing trade opportunities.
Tourism Growth – With its beautiful landscapes and cultural richness, the Philippines has a booming tourism sector which allows investment opportunities in hospitality.
These are only a few of the many reasons why one should invest in the Philippines. Having made substantial progress, the Philippines has moved up in World Bank rankings for ease of doing business, owing it to its laws that aim to reduce bureaucracy and improve government efficiency.
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