Philippines forecast to be second fastest-growing economy in SE Asia through 2035

Philippines projected to be second fastest-growing economy in SE Asia until 2035

BusinessWorld
September 17, 2026

THE PHILIPPINES could emerge as Southeast Asia’s second fastest-growing major economy over the next decade, with growth averaging 5.8% through 2035, according to a report by Bain & Company, DBS Group Holdings, and Vriens & Partners. 

In the Southeast Asia Outlook 2026-2035 report released on Wednesday, the Philippine economy is projected to grow at an average annual rate of 5.8% from 2026 to 2035 under the baseline scenario.

“The Philippines, which has a favorable demographic tailwind, could grow at a 5.8% average annual rate as consumption, infrastructure, and governance reforms unlock investment,” the report said.

This would make the Philippines’ gross domestic product (GDP) growth the second-fastest among the six major Southeast Asian economies covered by the report, behind only Vietnam, which is projected to expand by an average of 6.2% annually until 2035.

The Philippine economy is expected to outpace Indonesia (5.4%), Malaysia (4.3%), Singapore (2.7%), and Thailand (2.2%).

Philippine GDP growth over the 10-year horizon is also above the 4.8% average for the six Southeast Asian economies.

The latest regional forecast for Southeast Asia is slower than the earlier average expansion of 5.1% for the 2024-2034 period, reflecting a more complex and volatile global environment.

However, the Philippine economy is experiencing a sharp slowdown this year, averaging 2.6% in the first half. The government is targeting 3.5%-4.5% GDP growth for 2026, and 5%-6% annually from 2027 to 2030.

Despite its relatively strong baseline forecast, the Philippines is also among the Southeast Asian economies facing the greatest downside exposure, according to the report.

The report noted that Indonesia, the Philippines, and Thailand would be the most exposed under a downside scenario because of their “capital-flow sensitivities, energy dependence, political uncertainty, and weaker structural momentum.”

Under more favorable global conditions, the Philippines could also capture less upside than Malaysia, Singapore, and Vietnam, which are better positioned to benefit from their roles in capital intermediation and global manufacturing supply chains. 

“Indonesia, Thailand, and the Philippines see more limited benefit, as persistent structural constraints limit their ability to translate an improved external environment into stronger growth,” the report said.

The Philippines’ favorable demographics, steady remittance inflows, and consumption-led  economic model provide some insulation from disruptions to global trade, it added.

However, it warned that the country’s dependence on imported energy, weaknesses in policy implementation and artificial intelligence (AI)-driven disruption to the outsourcing industry could prevent the economy from reaching its full potential.

The report also pointed to longer-term risks from AI-driven automation to the country’s business process outsourcing industry.

“Without stronger energy security and governance consistency, growth could be capped below the Philippines’ potential,” it said.

The report said that one of the Philippines’ immediate challenges is managing the transition to AI.

“The next few years will be critical; the Philippines must move into higher-value services while sustaining reform momentum through its next leadership transition,” it said.

The country also needs to strengthen its energy system, as gains in Philippine technology services have been constrained partly by limitations in the power grid. 

Across Southeast Asia, the report said growth over the next decade will increasingly depend on stronger institutions, more reliable energy systems and the ability to use AI to raise productivity.

“Dependence on imported energy quickly turns external price shocks into household inflation, while weak policy implementation hinders the conversion of investment commitment into actual deployment,” the report said.

It said grid capacity and reliability will be increasingly important in determining whether economies can expand their industrial bases and support power-intensive AI infrastructure.

The Philippines has already fallen short of the report’s earlier growth expectations. From 2024 to 2025, the economy grew by an average of 5.1%, compared with the 6.1% average assumed in their previous 2024-2034 forecast.

“The Philippines saw growth impeded by weaker investment and public sector execution,” the report said. — Justine Irish D. Tabile

Philippines climbs four places in a global competitiveness ranking 2026

PH climbs four spots in competitiveness list

Niña Myka Pauline Arceo
The Manila Times

19 June 2026

THE Philippines has gained four places in a global competitiveness ranking, reflecting improved perceptions of the country’s ability to foster a business-friendly environment despite lingering concerns over supply chain disruptions and exchange-rate volatility.

The country ranked 47th out of 70 economies this year, up from 51st in 2025, according to the latest World Competitiveness Yearbook released by the Switzerland-based International Institute for Management Development (IMD).

The improvement allowed the Philippines to retain its position as the 10th most competitive economy among countries with gross domestic product (GDP) per capita below $20,000.

The annual ranking assesses economies based on their capacity to create and maintain an environment that sustains the competitiveness of enterprises. It evaluates countries using four broad factors: economic performance, government efficiency, business efficiency, and infrastructure.

“I’ve seen improvements in institutional quality of the country based both on government and business efficiency,” World Competitiveness Center Director Arturo Bris told The Manila Times late on Wednesday.

“The country’s performance in the economic performance factor is the one that marks the country’s performance in the overall ranking,” he added.

Singapore returned to the top of the competitiveness rankings in 2026 after placing second last year, helped by a sharp improvement in business efficiency that propelled it to first place globally.

Hong Kong climbed to second place, extending its steady rise over the past three years and reinforcing the strong presence of Asian economies at the top of the list.

Switzerland slipped to third from first in 2025 after a decline in economic performance, one of the ranking’s four key factors, falling 24 spots to 37th.

Meanwhile, Taiwan rose two places to fourth, continuing its upward trend from eighth in 2024 and sixth in 2025. The United Arab Emirates remained in fifth place.

The Philippines, meanwhile, remained 13th out of 15 economies in Asia-Pacific region.

The country’s improved standing came against the backdrop of an increasingly fragmented global economy marked by geopolitical tensions, supply chain realignments and heightened uncertainty.

The IMD said competitiveness in today’s environment extends beyond traditional indicators such as market size, low labor costs and growth prospects.

Instead, institutional credibility, regulatory predictability and governments’ ability to respond to shocks have become increasingly important determinants of investor confidence.

“I think the good news for the Philippines is that institutional quality keeps on improving, that tends to be in the long term the best predictor of the competitiveness ranking,” Bris said.

“Because of the turmoil in the world economy last year and the stability created by tariffs and other geopolitical events, the country has suffered, in which I would say it’s only a temporary event,” he added.

But despite the country’s improved ranking, Filipino executives continued to identify several risks that could undermine confidence and future competitiveness gains.

About 67.4 percent of the executives surveyed cited supply chain disruptions as a major factor affecting business confidence. Meanwhile, 69.8 percent pointed to exchange-rate volatility as a significant concern, underscoring the vulnerability of businesses to external shocks and fluctuations in global financial markets.

The IMD identified several challenges the Philippines needed to address this year, including sustaining economic growth while keeping inflation in check amid external shocks.

It also stressed the need to improve government efficiency and reduce corruption risks, ensure quick responses to energy and food supply disruptions, address issues affecting access to and the quality of basic education and encourage investments in renewable energy and climate resilience.

Philippine economy now at a ‘sweet spot’ — BSP

Philippine economy now at a ‘sweet spot’ — BSP

BusinessWorld
02 September 2025

THE PHILIPPINE ECONOMY now sits at a “sweet spot” as inflation remains benign while the country’s banking sector and external position are strong, the Bangko Sentral ng Pilipinas (BSP) said.

“Amid the swirling controversies over corruption, I am pleased to report a piece of good news. We think the economy is in good shape,” BSP Governor Eli M. Remolona, Jr. said during a briefing at the Senate on Monday.

“Indeed, our economy is in what I would call a ‘sweet spot,’ and I think this would help our fiscal strategy (to) make it more effective,” he added.

For the first half, gross domestic product (GDP) growth averaged 5.4%, slower than the 6.2% a year ago.

Inflation averaged 1.7% in the January-July period, below the BSP’s 2-4% annual target.

Mr. Remolona said the central bank tamed inflation with its aggressive rate hikes.

Last week, it cut its key policy rate by 25 basis points (bps) to 5%. The central bank has so far lowered borrowing costs by a total of 150 bps since it began its easing cycle in August 2024.

“This lowering of the policy rate stimulates demand, it helps the economy grow, and because we did it in a very measured approach, it hasn’t led to inflation,” Mr. Remolona said.

He said inflation looks like it will stay within BSP’s 2-4% target range.

The BSP projected inflation to average 1.7% this year, before picking up to 3.3% in 2026 and 3.4% in 2027.

At the same time, Mr. Remolona also attributed the economy’s current state to the “sound” performance of the local banking system.

“The banks have solid balance sheets, assets are growing, deposits are growing, (and) income of banks is growing,” he said.

Mr. Remolona added that banks have maintained enough capital and liquidity.

“Looking at liquidity standards, international liquidity standards, our banks also hold liquidity that far exceeds the international standard,” he said. “At the same time, the loans are not so risky.”

Mr. Remolona also said digitalization and financial inclusion can help increase consumers’ savings, especially in a country where “savings rate tends to be quite low.”

Meanwhile, the BSP chief said the country has “more than enough” international reserves.

At end-July, the country’s gross international reserves slipped to $105.4 billion from $106 billion in June. — K.K.Chan

Philippine GDP grows 5.5% in 2nd Quarter of 2025

 PH economy expanded by 5.5% in Q2 2025 — PSA

Ted Cordero
GMA Integrated News
07 August 2025

The Philippine economy grew marginally quarter-on-quarter in the second quarter of 2025 amid the growth seen in services, agriculture, and industry sectors, and posted a deceleration from the same period last year, according to the Philippine Statistics Authority (PSA).

The country’s gross domestic product (GDP) — the value of goods and services produced in a period — grew slightly faster by 5.5% in the April to June 2025 compared to the 5.4% growth seen in the January to March 2025 period, PSA chief and National Statistician Claire Dennis Mapa reported at a press conference in Quezon City on Thursday.

The second quarter GDP growth was the fastest in four quarters, however, it was still slower than the 6.5% growth rate in the same period in 2024.

All major economic sectors posted annual growth during the quarter — agriculture, forestry, and fishing with 7.0%, industry with 2.1%, and services with 6.9%.

The PSA attributed the year-on-year growth to wholesale and retail trade, repair of motor vehicles and motorcycles with 5.1%; public administration and defense, and compulsory social security with 12.8%; and financial and insurance activities with 5.6%.

Fixed capital investments climbed 2.6%, led by private construction which grew 11.2%, and investments in durable equipment up 10.6%.

Government spending posted an 8.7% growth rate during the quarter, slower than the 18.7% seen in the first quarter, which Department of Economy, Planning, and Development (DepDev) Secretary Arsenio Balisacan attributed to the election spending ban.

“We expect to maintain that momentum in the spending side. I think that the next half, the second half of the year, you should see improvements in the construction, public construction spending,” he said in a briefing.

While the election spending ban hit government spending, officials said the campaigns boosted household spending which grew by 9.5%, faster than the 5.29% in the previous quarter, and the 5.4% in the second quarter of 2024.

Exports increased by 4.4%, outpacing import growth of 2.9%. Merchandise exports rose by 13.6%, driven by semiconductors which posted a 10.8% increase.

Services exports, however, declined by 4.2%, which Balisacan attributed to the global uncertainties.

“Possibly following the overall state of the global economy in the recent months, we saw deceleration. That uncertainty that people have been talking about, uncertainty in the trade sector, including trade and services,” he said.

The country’s economic team has set a 5.5% to 6.5% target for the full-year 2025, which Balisacan said is just around the corner for the lower band, and still feasible for the upper band.

“What we need to achieve for the rest of the year is 5.6% to achieve the lower limit of the range of 5.5%. That’s already just around the corner, so to speak, but I think we’ll do better in the second half. I’m confident that inflation has gone down quite substantially and the past reductions in the policy rates are beginning to be felt,” Balisacan said.

Inflation eased to 0.9% in July, the slowest in nearly six years, mainly due to the slower increases in prices of housing, water, electricity, gas, and other fuels.

Analysts believe this will give the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) room for more policy rate cuts. BSP Governor Eli Remolona Jr. has hinted at two more cuts this year, following the 25-basis-point rate cut in June.

For the upper end of 6.5%, the Philippine economy will have to grow by 7.5% in the second half, which Balisacan said would still be feasible.

“7.5% is high, but it’s not impossible. I think that if we see continuing, for example, improvement in the confidence of our consumers and our domestic investors and the economy, we should see a greater growth, higher growth in both consumption and investment, and the services,” he said. — RSJ, GMA Integrated News

PH economy doubled since 2010 - World bank

Philippine economy doubled since 2010, created over 11 million jobs

Thony Rose Lesaca

Manila Standard

15 July 2025

Rapid gross domestic product (GDP) growth has doubled the Philippine economy since 2010 and created over 11 million jobs, according to a World Bank report released Tuesday.

“Since 2010, the Philippines has forged ahead, achieving record low unemployment and doubling its GDP. Rapid growth put the country in the top quartile of fastest growing middle-income countries [MICs], while the 11.7 million jobs created led to a record low 3.8 percent unemployment rate in 2024,” the World Bank said in its Growth and Jobs report.

Data showed that employment grew 0.4 percentage points annually faster than the working-age population, with a shift towards wage-earning jobs in more productive sectors. Economic growth was propelled by a “spatial catch-up,” leading to relatively rapid income growth for the poor.

“At the historical growth rate from 1990 to 2010, the economy would have taken 19 years to double. Instead, GDP growth since 2010 has been consistent with the economy doubling every 13.5 years,” the report noted.

“Faster GDP growth came with employment outpacing working-age population [WAP] growth by 0.4 percentage points per year,” it said.

The report also said that the newly created jobs were of higher quality, with an increase in waged positions rather than self-employment, and a move towards more productive sectors.

Growth was fueled by pro-investment reforms, macroeconomic stability, and a surge in public and private investment.

Foundational infrastructure spending, structural reforms, and private capital mobilization were key drivers.

Capital accumulation accounted for over 90 percent of growth, reflecting high investment returns. Lagging regions contributed significantly, with most new jobs in non-tradable sectors, though IT and IT-enabled services also boomed.

Post-pandemic, economic growth has been among the highest in Asia and globally among emerging economies.

Poverty incidence declined to 15.5 percent in 2023 from 18.1 percent in 2021 and below the pre-pandemic level of 16.7 percent in 2018.

The labor market also improved, with the unemployment rate falling to 4.3 percent in 2024, surpassing the government’s target of 4.4 percent to 4.7 percent.

“Nevertheless, significant structural challenges persist,” the report cautioned. “Capital deepening and labor force expansion have primarily driven economic growth, while gains in total factor productivity remain limited.”

Regions outside the National Capital Region (NCR) experienced faster labor productivity growth over the past 15 years. Low-income regions (LIRs) and medium-income regions (MIRs) saw 3.2 percent and 2.5 percent annual productivity growth, respectively during the post-global financial crisis (GFC) period, a significant improvement from 2.3 percent and 2.1 percent between 2001 and 2009.

The National Capital Region experienced a decline in annual growth in value added per worker, from 3.1% to 1.5%.

The accelerated labor productivity growth in LIRs and MIRs was attributed to an increased number of formal firms, with LIRs achieving 3.8 percent growth and MIRs 2.7 percent growth post-GFC.

Many of these firms capitalized on non-tradable activities like construction, real estate, commerce, and hospitality services, driven by local demand. The rise in formal firms also led to improved wage employment, increasing from 60 percent to 67 percent in LIRs and 77 percent to 84 percent in MIRs.

“Growth was also more spatially balanced than it had been [with low- and medium-income regions contributing significantly to overall GDP growth], and the real incomes of the bottom 40 percent grew at a faster rate than the incomes of the wealthiest 20 percent,” the World Bank said.

“Underpinning this progress were improved labor outcomes, including a shift from self-employment (primarily in agriculture) to wage employment (mainly in services), driven by higher public investment (mainly in connectivity infrastructure) and reforms that helped increase private investment,” it said.

PH GDP grows 5.1% in first quarter

PH economy grew faster by 5.4% in Q1 2025 — PSA

Story by TED CORDERO
GMA Integrated News 
08 May 2025

The Philippine economy expanded faster in the first three months of 2025 —described as a “measured start”— amid the growth seen in services, industry, and agriculture sectors, according to the Philippine Statistics Authority (PSA).

The country’s gross domestic product (GDP) —the value of goods and services produced in a period— grew faster by 5.4% in the first quarter of 2025, higher than the upwardly revised growth rate of 5.3% in the last quarter of 2024, PSA chief and National Statistician Claire Dennis Mapa reported at a press conference in Quezon City on Thursday.

This was also the fastest GDP growth rate seen since the third quarter of 2024, albeit slower than the 5.9% growth recorded in the first quarter of 2024.

At constant prices, the economy reached a value of P5.477 trillion during the period, up 5.4% from P5.196-trillion GDP seen in the same quarter last year.

Department of Economy, Planning and Development Undersecretary Rosemarie Edillon said the country’s GDP needs to increase by 6.2% in the remaining quarters of 2025 to hit at least the lower-end of the. government’s growth target of 6% to 7% for the year.

“Our concise description of the first quarter economic performance is a ‘measured start,’” Edillon said.

The Philippines, so far, ranked second among its Asian peers that have already released their first quarter figures.

The country fell behind Vietnam, which grew by 6.9% and tied up with China with the same growth rate of 5.4%.

Nonetheless, the Philippines outpaced Indonesia, Malaysia, and Thailand, which grew by 4.9%, 4.4%, and 2.8%, respectively, according to the DEPDev official.

“This performance underscores the relative resilience of our economy in the face of global volatility,” she said.

“The Philippine economy continues to show signs of a steady growth,” the DEPDev official said.

Major sectors

The economic performance was on the back of the year-on-year growths posted by all of the country’s major economic sectors.

In particular, the Agriculture, Forestry, and Fishing expanded by 2.2%; while Industry and Services sectors grew by 4.5% and 6.3%, respectively. 

“Sa naitalang pagtaas ng GDP na 5.4% sa unang quarter ng taong 2025, ang Services ay nagtala ng pinakamataas na kontribusyon na mayroong 3.9 percentage points. Ito ay sinundan ng Industry na nagtala ng kontribusyon na 1.3 percentage points; at Agriculture, Forestry, and Fishing na nakapag-ambag ng 0.2 percentage point,” Mapa said.

(With the 5.4% GDP growth rate seen in the first quarter of 2025, the Services sector accounted for the biggest contribution of 3.9 percentage points. This was followed by Industry with a share of 1.3 percentage points; and Agriculture, Forestry, and Fishing which contributed 0.2 percentage point.)

The main activities that contributed to the January to March 2025 GDP growth were Wholesale and Retail Trade; Repair of Motorcycles Vehicles and Motorcycles; Financial and Insurance Activities; and Manufacturing with annual growth rates of 6.4%, 7.2%, and 4.1%, respectively.

On the demand side, Household Financial Consumption Expenditure posted a growth of 5.3%.

“Easing food inflation supported household final consumption, which grew by 5.3%, year on year, faster than the 4.7% growth recorded in the fourth quarter 2024,” Edillon said.

Government Final Consumption Expenditure also grew by 18.7%, while Gross Capital Formation posted rose by 4%.

The DEPDev official said the growth in state spending has reflected “the front-loading of public programs in anticipation also of the election ban.”

Moreover, exports of goods and services recorded a surge of 6.2%, while imports of goods and services posted a 9.9% growth rate.

Strategic imperatives

Edillon highlighted the government’s “strategic imperatives” for sustained growth.

“We should note that amid the ongoing trade war, multilateral institutions such as the International Monetary Fund and the World Bank consistently project the country to remain one of the fastest-growing economies in the region this year. However, this is no reason for complacency,” she said.

“On the contrary, the first quarter's performance reinforces the urgency of strategic policymaking, accelerated structural reforms toward economic diversification, and efficient and effective delivery of programs and projects as we near the mid-term of the Marcos Administration,” she added.

The DEPDev official said that managing inflation remains a top priority to ensure that consumer prices remain affordable. 

“The April 2025 inflation rate of 1.4% indicates that our interventions are working,” Edillon said.

The Economic Department official said the government must accelerate its efforts to expand trade partnerships with key economies such as the European Union, United Arab Emirates, United States, and other potential markets amid the global realignment of trade and investments.

“Such engagements will allow us to diversify our export markets, secure broader market access, ensure our businesses (particularly our micro, small, and medium enterprises) to become part of global value chains, and ensure food availability and affordability,” Edillon said.

“On the supply side, we can and must support and capitalize on higher value-added activities in the services sector, a sector in which we have found comparative advantage, especially as digital technologies, including artificial intelligence, gain greater momentum for adoption and industries undergo workforce transition periods,” she added.

Continued strength

Finance Secretary Ralph Recto said that the first quarter performance highlights the continued strength and resilience of the Philippine economy, even amid rising global uncertainties.

“Our growth is strong, inflation continues to ease, private consumption is rising, and our job market remains vibrant. These are clear signals of accelerating domestic demand ahead, which is our strongest shield against external headwinds and trade wars,” he said.

The Finance chief expressed confidence that the government will hit its 6% growth goal for 2025, citing steady fiscal consolidation, easing inflation, and progress in trade negotiations with key partners, among other initiatives. 

“The national government’s revenue collections for the first quarter 2025 remain on track due to the strong performance of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC), which drove tax collections to PHP 931.5 billion, a double-digit increase of 13.55% compared to the same period last year,” Recto said.

He added that as inflation continues to cool down, private spending is expected to further improve. 

The lower-than-expected inflation rate of 1.4% in April 2025 also provides more room for the BSP to further cut policy interest rates to help boost the spending power of Filipinos, drive in more investments, and grow the economy, according to Recto.

Recto added that private investments are expected to increase with the implementation of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.

Likewise, Trade Secretary Cristina Roque said the administration’s focus remains on attracting high-quality investments in key sectors, ensuring consumer protection and empowering micro, small, and medium enterprises and local industries. 

Global uncertainties

Both the Finance and Trade chiefs  raised the ongoing global economic uncertainties, especially the reciprocal tariff policy of US President Donald Trump.

“We recognize the current global economic complexities, and we are responding with strategic focus and a commitment to open communication. The DTI will continue to monitor trends, engage stakeholders, and adapt policies to ensure sustained growth that leaves no one behind,” Roque said.

“On the other hand, significant progress has been achieved by the government in its trade negotiations with the United States. The Philippine government also continues to actively pursue new and expanded free trade agreements with economies like the United Arab Emirates, the European Union, Chile, and Canada to diversify export markets,” Recto said.

Trump, last month, announced a sweeping reciprocal tariff policy on its trading partners, including the Philippines which would be facing a 17% tariff on its imports to the US.

Although it is lowest among its Southeast Asian peers, still the Philippine government was prompted to send a delegation to Washington to seek dialogue with US officials while a 90-day pause in implementing the trade policy was ongoing.

On May 2, Roque, along with Economic Affairs adviser Frederick Go and Philippine Ambassador to the United States Jose Manuel Romualdez, met with US Trade Representative Jamieson Greer and tackled “mutually beneficial ways to strengthen the bilateral relations” amid the 17% tariff rate imposed by the US on Manila. 

A series of meetings would follow after Philippine trade and economic officials met with the Office of the United States Trade Representative (USTR) in Washington, D.C. earlier this month for a trade dialogue concerning the planned 17% tariff to be slapped on the country’s goods entering the US.— RSJ/VAL/BM GMA Integrated News

PH among fastest-growing economies in Southeast Asia – Moody's

PH among fastest-growing economies in Southeast Asia – economist

By Anna Leah Gonzales
Philippine News Agency
March 26, 2025

MANILA – The Philippines is one of the fastest-growing economies in Southeast Asia this year, an economist from Moody's Analytics said Wednesday.

"I think Philippines kind of stands out as one of the fastest growing economies in Southeast Asia. And really a lot of that is coming from the strength, from its domestic economy, given that it's, you know, highly reliant on its private consumption," economist Sarah Tan said in a virtual briefing.

Tan said Moody's Analytics expects Philippine economic growth to accelerate to 5.9 percent this year from 5.6 percent in 2024.

For next year, Moody's Analytics said the Philippine economy is projected to grow by 5.8 percent.

"While the expected growth is shy of the government’s target, it will mark the strongest expansion in three years. Private consumption and investment will be the key driver of growth in the Philippines, supported by a stable inflation and easing monetary policy," said Tan in a separate emailed statement.

Inflation is projected to continue to decelerate and stay within the government’s target range, settling at 2.8 percent in 2025 and 3 percent in 2026.

Tan, meanwhile, said the Bangko Sentral ng Pilipinas (BSP) "faces a tough balancing act to maintain price stability and economic growth."

"Progress on the inflation front supports the case for more rate cuts," she said.

Tan however noted that as US tariffs could slow global demand and the pace of interest rate normalization, the BSP will be more cautious about monetary easing to avoid significant weakening of the peso.

"In our latest baseline, we expect the BSP to bring the policy rate lower by 50 basis points to 5.25 percent by the end of 2025," said Tan.

Tan meanwhile said the main challenge would come from external conditions.

"The threat of more US tariff hikes and the potential for slower global interest rate normalization creates uncertainty in global demand. That will hurt the Philippines' exporters and industrial producers," she said. (PNA)

PH economy may grow faster in 2025

PH economy expected to grow faster in 2025

Ian Nicolas P. Cigaral, Meg Adonis

Cebu Daily News

27 February 2025

MANILA, Philippines — The country’s economy may grow faster this year than in 2024, boosted by election-related spending. However, a global trade war could slow growth below the government’s target.

Angelo Taningco, chief economist at Security Bank Corp., told reporters on Wednesday that GDP could expand by 6.1% in 2025, mainly driven by election spending.

If Taningco’s prediction comes to pass, GDP growth this year would be faster than the 5.6-percent clip in 2024, which fell short of both market consensus and the Marcos administration’s target of 6 to 6.5 percent.

At the same time, a 6.1-percent growth this year would settle within the 6 to 8 percent target band of the government for 2025 until the end of President Marcos’ term in 2028.

Apart from the usual boost from elections, lower borrowing costs could also translate to stronger consumption, a traditional growth driver.

That said, Taningco projected the Bangko Sentral ng Pilipinas (BSP) to further cut the policy by a half-percentage point this year, which would be split into two quarter-point cuts each at the June and October meetings of the Monetary Board.

But while there are “so many upsides” to growth this year, the Security Bank economist warned that a full-blown global trade war could be damaging to the domestic economy.

“But it depends on the magnitude of the trade war,” Taningco said.

Defensive market

Meanwhile, Swiss banking giant UBS Investment Bank Global Research was not as optimistic as Taningco.

At a press briefing, Grace Lim, UBS Asean and Asia senior economist, said improving domestic demand and consumption despite aggressive tariff policies abroad will likely speed up growth this year to 5.9 percent. This suggested that the Philippine would outperform the 5-percent average growth that UBS projected for Asean-6 this year.

But if realized, GDP expansion in 2025 would miss the Philippine government’s target for the third straight year.

“Consumption should be aided by the tailwinds of solid labor income growth and gradually easing food inflation, which has already played out in the second half of 2024,” Lim said.

Lim likewise expected both investments, which account for 23 percent of Philippine GDP, and consumption, which accounts for 73 percent, to accelerate this year.

While the threat of US President Donald Trump’s latest import tariff policies looms, Lim pointed out that the Philippines was “a rather defensive market in the event of potential trade tariff escalation.”

This is especially because the Philippines was domestically oriented, she said.

Potential volatility

According to the Philippine Statistics Authority, the below-target growth last year was due mainly to the onslaught of typhoons in the latter half of the year, thus muting economic activity.

Food price inflation was also among the main culprits.

Lim recognized that there was “potential volatility” in inflation, “stemming from food supply shocks.”

“In the first two months of the year, we did see potential risk from food prices, particularly vegetables,” Lim said.

“That might have weighed a bit on consumer sentiment, so that is a risk, but not one we can always predict with certainty due to weather-related factors.”

At the same time, however, she pointed out that overall inflation “has come back to target,” and this was a crucial tailwind that could push economic growth toward the target.

The services sector, along with the business process outsourcing industry, also had the potential to propel growth.

Lim likewise noted that despite the recent pause, the BSP had room to cut the benchmark rate for overnight borrowing in April and September, for a total of 50 basis points.

“The pause on rate cuts was warranted due to trade policy uncertainties and given that past easing was working its way through the economy. There was room to reassess the situation first,” she said.

PH economy to gain momentum in the next two years

Fitch expects Philippines growth to pick up

Keisha Ta-Asan
Philstar Global
05 February 2025

MANILA, Philippines — Fitch Ratings projects the Philippine economy to gain momentum over the next two years, supported by monetary easing, robust infrastructure spending and investment-friendly reforms.

In a report, Fitch Ratings analyst Krisjanis Krustins said the debt watcher expects the gross domestic product (GDP) growth of the Philippines to hit 5.9 percent in 2025 and 6.2 percent in 2026.

“Fitch still expects continued strong medium-term GDP growth and gradual fiscal consolidation in the Philippines, as reflected in its ‘BBB’/Stable rating, affirmed in June 2024,” Krustins said.

However, its 2025 forecast falls below the government’s growth target of six to eight percent, while the 2026 projection meets the lower end of the same target range.

“These growth rates are above ‘BBB’ peers, but below pre-pandemic norms, mainly due to continued weakness in private capital formation,” Krustins said.

The country’s GDP grew by 5.2 percent in the fourth quarter, matching the previous quarter’s pace but falling short of market forecasts.

This brought full-year GDP growth to 5.6 percent in 2024, below the government’s growth target of six to 6.5 percent.

Krustins also expects the Philippine government to post a fiscal deficit of 5.7 percent of GDP in 2024, down from 6.2 percent in 2023, with debt at 61.4 percent of GDP.

“We expect debt-to-GDP to decline from 2025 on strong growth and further narrowing of deficits. We expect general government metrics to remain stronger,” he said.

However, the pace of fiscal consolidation is expected to be constrained by political dynamics, particularly with midterm elections scheduled for May 2025. Fitch noted that the country’s political landscape has become more volatile ahead of the elections, with escalating tensions between President Marcos and Vice President Sara Duterte.

Public rifts between their families, particularly involving former president Rodrigo Duterte, could affect investor sentiment and policy continuity, Krustins warned.

Beyond domestic uncertainties, the Philippines also faces risks from shifting US economic and foreign policies.

“Further strengthening of the US dollar from trade protectionism could put further pressure on the Philippine peso and inflation, although weaker global growth and diversion of Chinese exports could offset this to some extent,” Krustins said.

“The Philippines would be vulnerable to a change in US immigration policy, given the importance of remittances for domestic consumption, although these are fairly diversified,” he added.

Despite these risks, the agency emphasized that the country’s economic fundamentals remain sound. Fitch said an upgrade in its sovereign credit rating would require stronger governance, faster debt reduction and sustained economic growth beyond current projections.

PH economy still one of the fastest growing in Asia-Pacific in 2024

DBM: 2024 GDP growth still puts PH among ‘fastest-growing’ economies

Ruth Abbey Gita-Carlos
Philippine News Agency
January 30, 2025

MANILA – The Philippines’ 5.6-percent economic growth for the whole of 2024 may be lower than the government’s target but still makes the country one of the “fastest-growing” economies in the Asia Pacific region, Budget Secretary Amenah Pangandaman said Thursday.

Pangandaman issued the statement, as she welcomed the latest Philippine Statistics Authority’s (PSA) report which showed that the Philippine economic growth settled at 5.2 percent in the fourth quarter of 2024, bringing the full-year growth to 5.6 percent.

“While our target for 2024 is 6 to 6.5 percent, the results still put the Philippines among the fastest-growing economies in the Asia Pacific region, outpacing many of our ASEAN neighbors, and still propelling our desired economic transformation,” she said.

Pangandaman emphasized that the country faced economic challenges last year, including a record-breaking typhoon season, with six consecutive storms between the end of October and the middle of November.

She said the onslaught of the recent typhoons in the fourth quarter of 2024 “greatly affected the economy.”

“The fact that we still hit 5.6 percent in spite of all these storms shows that our formula for growth is working,” Pangandaman said.

Pangandaman, who also chairs the Development Budget Coordination Committee, said the Build Better More Program is also working, as construction was the biggest contributor to both the economic growth for the fourth quarter and the whole year of 2024, which were at 7.8 percent and 10.3 percent, respectively.

Pangandaman said the government will stay focused to make sure that it is on track with its Agenda for Prosperity.

“For the upcoming years, we remain dedicated to implementing priority programs and strategies aligned with our 8-Point Socioeconomic Agenda and the Philippine Development Plan 2023-2028. Through these efforts, we anticipate fostering a favorable and resilient macroeconomic environment that will sustain our progress toward growth in the medium term,” she said.

“Moving forward, we will ensure that all the necessary support is in place to further boost our GDP growth and pursue our Agenda for Prosperity,” Pangandaman added.

The DBM said its push for a more efficient budget utilization saw positive results after Government's Final Consumption Expenditure posted the highest year-on-year growth rate of 9.7 percent.

DBM Principal Economist Joselito Basilio said the government’s efforts to address underspending issues, provide sufficient budgets to programs with the highest multiplier effects, and intensify efforts to advance the country's infrastructure systems have helped sustain the country’s economic growth.

Basilio noted that as the GDP remained steady, Gross National Income grew year-on-year by 6.2 percent in the fourth quarter of 2024, bringing the full-year 2024 growth to 7.6 percent. (PNA)

PH poised to become the next SEA tech center

Emerging startup trends in the Philippines

Paulo Campos, Raya Buensuceso
Inquirer.net
30 January 2025

The Philippines has emerged as Southeast Asia’s most exciting startup ecosystem in recent years, poised to become the next regional tech center after Singapore and Indonesia. At Kaya Founders, our investment strategy particularly centers on three key trends that encapsulate why the Philippines is an exciting market today: frictionless business enabled by artificial intelligence (AI)-powered platforms, the rise of tech-enabled consumer ventures, and the transformative power of embedded credit.

Frictionless business: AI-powered platforms reshaping industries. The adoption of AI-driven solutions is rapidly transforming the country’s largest industries. A generational shift in business leadership has ushered in digitally native leaders who are embracing AI to streamline processes in areas such as customer service, content creation, and supply chain management.

This trend positions the Philippines as fertile ground for AI-powered business-to-business platforms. Startups that leverage AI to drive efficiency and productivity, particularly in sectors like health care, commerce, and financial services, are poised to enhance traditional operations and unlock growth.

Two of Kaya Founders’ best-known portfolio companies are Etaily and Local, which both enable businesses, retailers, and merchants to more efficiently and effectively sell their products online across the different channels and marketplaces in the Philippines and across Southeast Asia.

Tech-enabled consumer ventures: Harnessing an emerging middle class. With household consumption representing 71.6 percent of GDP—significantly higher than the regional average of 55 to 60 percent—the Philippines is undeniably a consumer-driven economy. Yet, unlocking this potential requires a nuanced understanding of a diverse and evolving consumer base.

Two segments dominate this rising middle class: “power users” who prioritize convenience and are willing to spend on experiences and “value-focused users” who are driven by discounts. These dynamics have fueled the rise of digital shopping models like live and social commerce, where startups are reshaping how consumers discover, engage with, and purchase products.

Despite challenges in payment infrastructure and logistics, the opportunity to deliver affordable yet aspirational products through seamless digital platforms is immense, particularly for younger, digital-savvy consumers.

Embedded credit: Closing the financing gap. Within the realm of fintech, perhaps the most compelling opportunity lies in embedded credit. According to the recently published Google, Bain, and Temasek’s e-Conomy report, lending drove 22 percent of the revenue of digital financial services across Southeast Asia last year, growing annually at a rate of 35 percent. Yet the credit gap in the Philippines remains vast—estimated at $221 billion for micro, small, and medium enterprises, the largest in the world as a share of GDP by some measures and affecting three-fourths of Filipino adults without formal credit access.

Embedded finance models are addressing these gaps by integrating lending into everyday platforms, making access to credit more convenient and contextually relevant. Startups like OneLot and Netbank are at the forefront of this transformation. OneLot has enhanced dealer onboarding and introduced flexible loan products, while Netbank’s Banking-as-a-Service solutions integrate digital banking into supply chains and salary payments.

A maturing ecosystem. Venture capital funding in Southeast Asia has surged, with $72 billion deployed in the past five years—three times the volume of the preceding half decade. Yet, what makes this moment particularly exciting is the shift toward capital efficiency and profitability.

The Philippines, in particular, has emerged as a beacon of opportunity, bucking global trends of declining late-stage funding. Institutional investors and development finance institutions such as Asian Development Bank, International Finance Corp., Texas Pacific Group, Kohlberg Kravis Roberts, and a range of others have made late-stage investments in the country. Meanwhile, a growing pool of credible, experienced founders is fueling momentum in the early-stage segment.

The fundamentals of the Philippine market resemble the early growth trajectory of Indonesia’s and Singapore’s tech ecosystems. As digital adoption expands from early adopters to widespread use, the impact on the broader economy will only deepen.

Unlocking the Philippines’ potential. The Philippines’ tech ecosystem is at an unprecedented inflection point, but unlocking its full potential will require a concerted effort across stakeholders. Entrepreneurs, investors, and other business leaders must work together to address infrastructure challenges, build talent pipelines, and scale solutions that meet the needs of businesses and consumers alike.

At Kaya, we remain committed to identifying and supporting the next wave of Philippine startups poised to transform industries and revolutionize the economy and country in the future.

PH to maintain lead in economic growth 2025

Philippines poised to be Southeast Asia’s second fastest-growing economy in 2025

Philippines maintains strong momentum as Southeast Asia’s economic powerhouse, overcoming global challenges with resilience and robust growth.

Daily Tribune
19 January 2025

The Philippines is set to maintain its position as one of Southeast Asia’s top-performing economies, with the World Bank forecasting a 6.1% GDP growth in 2025. This follows an estimated 5.9% growth in 2024, according to the recently released January 2025 Global Economic Prospects (GEP) report.

Outpacing Regional Peers

The country’s robust economic expansion places it as the second fastest-growing economy in Southeast Asia, trailing only Vietnam, which is expected to grow by 6.6% this year. The Philippines also outpaces its regional peers, including Cambodia (5.5%), Indonesia (5.1%), and Malaysia (4.5%). The World Bank’s projection aligns with the Philippine government’s growth target of 6–8% for 2025.

From January to September 2024, the Philippine economy recorded an average growth of 5.8%, driven by resilient domestic consumption, which the report credits to a strong labor market and relatively low inflation. These factors are expected to sustain momentum in 2025.

Sustained Regional Demand

The World Bank noted that growth across the East Asia and Pacific (EAP) region would be supported by solid domestic demand, despite global headwinds. The report states, “Private consumption is set to remain firm, supported by low inflation and robust labor market conditions that will bolster household incomes.”

However, risks remain for the Philippines and the region, including global trade tensions, weaker-than-expected growth in major economies like China, and climate-related disasters.

Looking Ahead

For 2026, the World Bank projects the Philippines to grow by 6%, maintaining its position as a regional leader in economic expansion. Vietnam is again forecast to take the lead with a 6.3% growth rate. Meanwhile, other economies in Southeast Asia, such as Cambodia (5.5%), Indonesia (5.1%), and Thailand (2.7%), are expected to trail behind.

Balancing Growth and Risks

Despite optimistic forecasts, the report highlights the need for continued vigilance against global and domestic risks. The Philippines, like other emerging economies, faces challenges such as trade policy uncertainties, the impacts of climate change, and geopolitical tensions that may dampen growth prospects.

The World Bank emphasized the importance of decisive policy actions to safeguard growth and maintain resilience. This includes investments in infrastructure, human capital development, and measures to strengthen financial stability.

As the Philippines continues to navigate the global economic landscape, its ability to sustain strong growth and address emerging challenges will be critical in ensuring long-term prosperity.

(Sources: World Bank Group Global Economic Prospects Report January 2025, GEP Jan 2025 GDP Growth Data)

S&P upgraded Philippine credit rating

Philippines credit outlook upgraded to positive

Keisha Ta-Asan
PhilStar Global
27 November 2024

MANILA, Philippines — S&P Global Ratings has raised the Philippines’ credit rating outlook to positive from stable, increasing the possibility of an upgrade in the next 12 to 24 months.

In a report, the New York-based debt watcher affirmed its “BBB+” long-term investment grade rating and “A-2” short-term sovereign credit ratings on the Philippines.

“The positive outlook reflects our improved assessment of institutional and policy settings in the Philippines. This improvement could lead to stronger sovereign support over the next 12 to 24 months if the Philippine economy maintains its external strength, healthy growth rates and that fiscal performance will strengthen,” it said.

S&P said it might raise the Philippines’ ratings if current account deficits taper off and the government achieves faster fiscal consolidation.

On the other hand, the debt watcher could revise the outlook back to stable if economic growth momentum weakens or if the current account deficit becomes persistent and erodes the country’s external balance sheet.

However, S&P believes the Philippines has demonstrated strong economic recovery in the last two years.

“The ratings on the Philippines reflect the country’s above-average economic growth potential. This strength underpins constructive development outcomes. The ratings also benefit from the country’s strong external position,” it said.

The credit rating agency projects the Philippines’ gross domestic product (GDP) to grow by 5.5 percent this year before picking up to six percent in 2025, 6.2 percent in 2026 and 6.5 percent in 2027.

According to S&P, growth is expected to be supported by private consumption and improving external demand. GDP per capita could rise to about $4,119 this year and $4,478 in 2025.

“The country has a diversified economy with a strong record of high and stable growth. This reflects supportive policy dynamics and an improving investment climate,” it said.

Data from the local statistics agency showed GDP growth slowed to 5.2 percent in the third quarter from 6.4 percent in the previous quarter and six percent a year ago. From January to September, GDP expansion averaged 5.8 percent.

S&P also sees inflation at 3.3 percent this year, 3.1 percent in 2025, 3.2 percent in 2026 and three percent in 2027. All forecasts are within the two to four percent target of the Bangko Sentral ng Pilipinas (BSP).

S&P: Philippines among global growth drivers by 2035

S&P: Philippines among global growth drivers by 2035

Story by Louella Desiderio

Philstar Global

18 October 2024

MANILA, Philippines — The Philippines is among the emerging economies that will be driving global growth over the next decade, according to S&P Global.

In its report titled “Look Forward Emerging Markets: A Decisive Decade,” S&P Global said emerging markets would play a crucial role in shaping the global economy over the next decade, averaging 4.06 percent gross domestic product (GDP) growth through 2035 and contributing about 65 percent of global economic growth.

“This growth will be driven mainly by emerging economies in Asia-Pacific, including China, India, Vietnam and the Philippines,” S&P Global said.

The Philippines is expected to post the third highest average annual GDP growth of 4.8 percent from 2024 to 2035, it also said.

Vietnam is expected to see annual GDP growth over the next decade at 6.2 percent, followed by India, which is projected to post annual GDP growth of 5.9 percent in the same period.

S&P Global said supportive demographics, abundant natural resources, evolving trade dynamics and technological innovations in energy and manufacturing could propel the emerging markets to higher development stages.

Emerging markets, however, also face geopolitical disruptions, climate change risks and the resurgence of industrial policies and protectionism in advanced economies.

“This intricate environment will present both emergent opportunities and multifaceted challenges for emerging markets as they strive to accelerate their advancement,” S&P Global said.

The Philippine government is aiming for a six to seven percent economic growth for this year.

As of the first semester, the Philippine economy posted an average growth of six percent.

For next year, the Philippine government has set a 6.5 to 7.5 percent economic growth target.

For 2026 to 2028, the Philippine government’s annual economic growth goal is at 6.5 to eight percent.

ADB retains 2024, 2025 PH economic growth forecast

ADB retains 2024, 2025 PH economic growth forecast

Story by TED CORDERO
GMA Integrated News
25 September 2024

The Asian Development Bank (ADB) has maintained its economic growth forecast for the Philippines this year and 2025 as it expects monetary easing and decelerating inflation to drive growth.

In the September edition of its flagship publication, Asian Development Outlook (ADO), the ADB said the growth forecast for the country’s gross domestic product (GDP) was unchanged from the July edition, at 6% for 2024 and 6.2% for 2025. 

“Moderating inflation, monetary easing, and sustained public spending, particularly on major infrastructure projects, will support Philippine economic growth this year and the next,“ the Manila-based multilateral lending said.

The ADB’s figures fall within the lower end of the Marcos administration’s GDP target range of 6% to 7% for the year and 6.5% to 7.5% for next year.

“The expansion in gross domestic product will be driven by broad-based domestic demand, supported by lower inflation and interest rates,” the lender said.

The Philippines posted a growth rate of 6.3% in the second quarter of 2024—the fastest in five quarters—on the back of strong consumption activities.

The ADB also lowered its inflation forecast to 3.6% in 2024 from its April estimate of 3.8%, reflecting the sustained deceleration in food prices partly due to lower tariffs on rice imports.

Inflation is expected to ease further to 3.2% in 2025 compared to the previous estimate of 3.4%, according to the lender.

“Most of the ingredients for the Philippines’ sustained economic growth are in place—rising government revenues are boosting public expenditures on infrastructure and social services, increasing employment is driving consumption, and reforms to open the economy to more investments are underway. With inflation slowing, the country is in a strong position to lead growth in Southeast Asia,” said ADB Philippines country director Pavit Ramachandran.

The bank said risks remain due to potential severe weather events, which could drive inflation higher.

“External factors such as a sharper slowdown in major advanced economies and the People’s Republic of China, financial volatility due to US monetary policy decisions, geopolitical tensions, and rising global commodity prices also pose threats to growth,” the ADB said.

The bank cited the government’s public infrastructure spending, which is seen to range between 5% and 6% of GDP annually from 2024 to 2028, after hitting 5.8% of GDP in 2023.

The government’s “Build Better More” infrastructure program includes 66 ongoing projects and another 31 approved for implementation as of August 2024.

“The infrastructure program aims to enhance physical connectivity through railways, bridges, and airports, or strengthen water management through irrigation, water supply, and flood control,” the ADB said.

“Climate change mitigation and adaptation, digital connectivity, energy, and agriculture projects are also prioritized under this program,” it added.

The ADB said it is financing key infrastructure projects, such as the Malolos Clark Railway Project and the South Commuter Railway Project, which will link Metro Manila to northern and southern provinces in Luzon.

The bank is also supporting the Bataan-Cavite Interlink Bridge Project and the Integrated Flood Resilience and Adaptation Project, which aim to enhance flood and climate change resilience in three major river basins in the country.  —VBL, GMA Integrated News

Seizing the Philippines’ tourism potential

Seizing the Philippines’ tourism potential

Presented by: Tourism Promotions Board Philippines

on GMA News
September 11, 2024 

The Philippines is among the top tourist destinations in the world, making tourism a major contributor to its economy. In 2023, the tourism sector posted an 8.6% contribution to the Philippine Gross Domestic Product. The number not only show tourism’s impact, but it also affirms the potential of the Philippines as a prime hub for meetings, incentive travel, conferences and exhibitions (MICE) tourism industry.

Expanding horizons with MICE

The MICE industry is geared towards planning, organizing, and implementing business events.

Leveraging its status as an outstanding travel hotspot, the Philippines has been actively positioning itself as a premier destination for MICE. Aside from its popular tourism offerings, the country is also home to numerous convention centers located in strategic areas across the nation. May it be for small groups or large-scale receptions, organizers and venue seekers have many options ready for the task.

Some MICE destinations that the Philippines has to offer include Manila, Cebu, Davao, Iloilo, Bacolod, Clark, and the Subic Bay Freeport. These hotspots offer exceptional tourism products and services, as well as vast opportunities for business. Not only that, they also have consistently growing local economies that attract investors.

Other localities are also working hard to seize opportunities in the MICE industry. For instance, Iloilo has been gaining ground by building roads, a modern airport, and multiple commerce spaces in the last two decades. In 2015, it established the Iloilo Convention Center, fostering the growth of the MICE industry in the city.

Central Luzon is not one to get left behind. In fact, the recently concluded Philippine MICE Conference 2024 (MICECON 2024) was held at the SMX Convention Center Clark in Pampanga from July 10 to 12. Following the theme “MICE XD: Xperience Diversified”, the event underscored the significance of technology, inclusion, and diversity in shaping the industry’s future.  Subject experts led discussions and covered topics including artificial intelligence, crisis recovery and reputation management, inclusive event planning, digital marketing and the appeal of in-person experiences, as well as training and upskilling of the tourism workforce.

Spotlight on Clark

This is the second time that Clark hosted the prestigious convention. In her opening message, Tourism Secretary Christina Garcia Frasco said: "Clark’s selection as the host of MICECON 2024 is a recognition of its readiness and potential as a premier MICE destination. The Clark Freeport Zone’s accessibility, state-of-the-art conference venues, and comprehensive support services are very well prepared to welcome all the participants of MICECON 2024.”

It first hosted the event in 2014, an experience which planted the possibilities for its economic future with tourism and MICE. Poised as the ultimate tourism destination in Central Luzon, the 4,400-hectare Clark Freeport Zone was developed with business and tourism as its primary goals.

Location played an important role in its positioning as a prime MICE hub. Strategically situated only 80 kilometers north of Metro Manila, Clark is accessible via the North Luzon Expressway. It also serves as a gateway to Northern and Central Luzon via the Clark International Airport, which currently flies to ten international and six domestic destinations. Being only two to four hours away via air travel to other major Asian destinations, this aerotropolis is also a natural entry point to the Asia Pacific Region.

Infrastructure-wise, Clark is home to an assortment of facilities that are up-to-spec for high-end and IT-enabled industries, aviation, logistics enterprises, and tourism—including MICE. It currently has 80 convention or meeting facilities, 3,608 rooms and villas, and 146 dining establishments. To improve Clark’s portfolio, expansion of existing facilities and construction of new ones are either being planned or already in progress. A train system connecting Clark to its adjacent regions is also underway.

Clark today is the result of years of careful planning and painstaking work by everyone who collaborated for its development—the locals, the government, and the public and private sectors. A showcase of success, Clark leads the way for other localities that also hold the potential to succeed with MICE.

Go for MICE

For our local economies, the MICE industry brings employment opportunities, profit, and business growth. But more importantly in the grander scheme of things, it helps put the Philippines in the global spotlight, opening more opportunities for international trade, as well as knowledge and technology exchanges.

According to Grand View Research, a market research and consulting company based in India and the US, the Asia-Pacific MICE market in 2023 was valued at $183.47 billion, and projections expect it to grow 10% by 2030. This shows that there is much to gain from developing the Philippines’ capability to host the MICE sector.

Acknowledging its valuable contributions, Tourism Secretary Frasco emphasized: "By positioning the Philippines as a premier MICE destination, we foster economic growth and provide invaluable opportunities for our people.”

With sufficient support and collaboration between stakeholders, the future is bright for the Philippines as a premier MICE destination.

M.I.C.E.CON is organized by the Tourism Promotions Board, an attached agency of the Department of Tourism, that is tasked to promote the Philippines as a world-class tourism and MICE destination. The event gathers MICE professionals for an opportunity to learn new global trends in business meetings, to network with other MICE experts, and to explore the host location’s facilities.