Finance Secretary Ralph Recto pitched the Philippines as an attractive investment hub, gathering strong interest from American investors during the Philippine Dialogue held at The Ritz-Carlton in Washington, D.C.
“While global prospects remain clouded with uncertainties brought by geopolitical tensions, there is one area of consensus among economists: the Philippines is set to lead growth over the next decades,” he said in his keynote speech.
In his presentation, the Finance Chief made a strong case before American investors on the compelling reasons why they should continue expanding their operations in the country.
Among these is the Philippines’ promising growth trajectory with the country holding the status of being the fastest-growing economy in ASEAN and soon to be one of the largest economies in the world.
Despite external headwinds, the Philippines expanded by an average of 6.6% during President Ferdinand R. Marcos, Jr.’s term.
Multilateral organizations affirm the strength of the Philippine economy projecting it to remain a frontrunner in the region with a projected growth of 5.8% to 6.3% in 2024.
Furthermore, international research organizations forecast that the Philippines will join the ranks of the world’s top 20 largest economies by mid-century.
Specifically, Goldman Sachs projects the Philippines to be the 14th largest economy globally by 2075, outpacing France.
The Finance Secretary attributes the country’s promising growth trajectory to strong domestic consumption which is a robust shield against external factors contributing to the global economic slowdown.
“This strong consumer spending, which continues to account for more than 70 percent of the economy, is being supported by a vibrant labor market,” he said.
The largest portion of the Philippine workforce is engaged in formal and stable work, with 62.5% of the total employed individuals in 2023 belonging to the wage and salary group–an indication of a strong and growing middle class.
Secretary Recto also highlighted the country’s strong domestic market which offers a huge capacity for enterprises to thrive.
By 2025, the Philippines is expected to become an upper middle-income country, which means having a gross national income (GNI) per capita income range of USD 4,466 to USD 13,845.
The country is also expected to become the world’s 13th-largest consumer market by 2030 with a whopping 79 million consumers. By then, more than two-thirds of the Filipino population will spend more than USD 11 daily.
Meanwhile, the Finance Chief pointed out that the government’s strong commitment to prudent fiscal management ensures stability for business.
The country boasts a growth-enhancing fiscal consolidation plan which ensures that the economy will continue to outgrow its debt over the medium term.
Due to its adherence to fiscal discipline and prudent debt management, credit rating agencies continue to affirm the Philippines’ high credit ratings, which is a strong vote of confidence in its sound fiscal and economic policies.
Apart from these, Secretary Recto said bringing further business stability is the country’s stable political environment with a decisive President whose foreign policy is friendly, independent, and peace-oriented.
“President Marcos, Jr. has been actively engaging with leaders around the world to strengthen ties and form alliances aimed at boosting economic security, which is a key aspect of ensuring national security,” he stressed.
Under President Marcos, Jr.’s leadership, the government rolled out a red carpet of pro-business policies to welcome investors into the country with open arms.
The Philippines has significantly improved regulations to strengthen public-private partnerships, lowered the minimum paid-up capital requirement for foreign corporations and enabled full foreign ownership in public services and renewable energy projects.
