With a calibrated reopening and a new government in place, the Philippines looks set to pick up from where it left off, promising to become once more the region’s bright economic star.
The new government has set the priorities for its six-year term, focusing on job creation, food security and self-sufficiency, adequate energy supply, infrastructure development, public health, education and tourism, among other areas.
Private sector participation in this new phase of growth is especially exciting. A pivot is underway to crowd-in financing for infrastructure to supplement government resources, which served as a back-stop at the height of the pandemic. The goal is to bring down the deficit-to-GDP to the 3% level by 2028.
One of the most important advantages of the Philippines is its young population. About 65% out of a population of 110 million are aged 15 to 64 years. This much younger working population, compared with its neighbours, is what can drive the economy as it transitions to the digital age.
The economy is to projected to grow from 6.5% to 7.5% this year, expanding to 8% annually from 2023 to 2028, the highest among the Asean+3 countries. By 2028, the Philippines is expected to reach upper-middle income status with a poverty rate declining to single digit, or 9%.
It won’t be without challenges. While the country is expected to benefit from an improving domestic environment, the external conditions have turned less favourable.
The Asset Events is delighted to be hosting the 17th Philippine Summit. As the longest-running event hosted by an international investment platform, this high-level event gathers policymakers, game changers and innovators to discuss opportunities and challenges as a new leadership takes over to chart the country’s course in the next six years and beyond. The Summit will tackle the following topics:
The domestic bond market continues to grow, reaching 10.43 trillion pesos in the first quarter of 2022 largely due to issuances led by the government to support the recovery from the pandemic.The Philippine Stock Exchange expects companies to return as recovery takes shape. These companies are expected to showcase their sustainability credentials as the Philippines steers its economy towards sustainable and resilient growth.
The pandemic has unleashed digital possibilities. The value brought by the emergence of a digital economy can be extensive and can be shared by all sectors of society accelerating inclusive economic growth. Companies are realizing efficiencies via digitization of their work flow. MSMEs, a key player in the future of growth reimagined, are transforming their business with digitalization adapting to the realities during the pandemic. What these changes mean are refreshed business models, new channels to access the market for finance and for buyers, and personalized user experience to command customer loyalty.