The ocean and the beach in the Philippines

Philippines Economic Data & Projections

Philippines Economic Outlook

A fast-growing consumer-driven economy:

The Philippines has been one of Asia’s fastest-growing economies in recent years, supported by strong domestic consumption, a young workforce, and a rapidly expanding services sector. The country’s GDP growth has averaged around 6% over the past decade, although it suffered a deep contraction in 2020 due to the COVID-19 pandemic. The economy has since rebounded, with remittances from overseas workers, robust business process outsourcing (BPO) services, and infrastructure investments driving growth.

Services and remittance-driven growth:

The Philippines is a global leader in the BPO industry, with companies outsourcing customer service, IT, and financial operations to the country due to its skilled, English-speaking workforce. The BPO sector contributes significantly to employment and foreign exchange earnings. Additionally, remittances from overseas Filipino workers, which account for nearly 10% of GDP, provide a critical buffer against external economic shocks and sustain household consumption.

Infrastructure and manufacturing potential:

President Ferdinand Marcos Jr. has prioritized infrastructure investment under the Build, Better, More program, aiming to upgrade transport, energy, and digital infrastructure. However, manufacturing lags behind regional peers, and the country’s heavy reliance on imports for key goods contributes to a persistent trade deficit. The government is seeking to attract foreign investment in manufacturing, particularly in electronics, automotive, and renewable energy sectors.

Philippines economic outlook:

The Philippines’s economy is set to maintain strong growth in the coming years, but risks remain, including high inflation, fiscal constraints, and vulnerability to natural disasters. Political stability and structural reforms will be crucial to sustaining long-term development. The country’s youthful population, growing middle class, and expanding digital economy present significant opportunities, though addressing infrastructure gaps and trade imbalances will be key to unlocking its full economic potential.

Philippines' Macroeconomic Analysis:

Nominal GDP of USD 462 billion in 2024.

GDP per capita of USD 4,078 compared to the global average of USD 10,589.

Average real GDP growth of 4.9% over the last decade.

Share of the region's population
Share of the region's GDP

Sector Analysis

In 2021, services accounted for 61% of overall GDP, manufacturing 18%, other industrial activity 11%, and agriculture 10%. Looking at GDP by expenditure, private consumption accounted for 75% of GDP in 2021, government consumption 16%, fixed investment 21%, and net exports -12%.

GDP by economic sector
GDP by type of expenditure

International trade

In 2021, manufactured products made up 80% of total merchandise exports, mineral fuels 1%, food 9%, ores and metals 7% and agricultural raw materials 1%, with other categories accounting for 2% of the total. In the same period, manufactured products made up 71% of total merchandise imports, mineral fuels 12%, food 13%, ores and metals 2% and agricultural raw materials 1%, with other goods accounting for 1% of the total. Total exports were worth USD 79 billion in 2022, while total imports were USD 137 billion.

Key exports
Key imports
Key export partners
Key import partners

Main Economic Indicators

Economic growth

The economy recorded average annual growth of 4.9% in the decade to 2024. To read more about GDP growth in the Philippines, go to our dedicated page.

Fiscal policy

Philippines's fiscal deficit averaged 4.0% of GDP in the decade to 2023. Find out more on our dedicated page.

Unemployment

The unemployment rate averaged 6.0% in the decade to 2024. For more information on Philippines's unemployment click here.

Inflation

Inflation averaged 3.4% in the decade to 2024. Go to our Philippines inflation page for extra insight.

Monetary Policy

The Philippines monetary policy rate ended 2024 at 5.75%, up from 4.00% a decade earlier. See our Philippines monetary policy page for additional details.

Exchange Rate

From end-2014 to end-2024 the peso weakened by 22.7% vs the U.S. dollar. For more info on the peso, click here.

Economic situation in Philippines

After a series of typhoons battered the country in Q3 and dampened annual GDP growth, the economy is forecast to have grown at a slightly quicker pace in Q4. Softer inflation and looser monetary conditions should have supported private spending. Additionally, higher tourist arrivals growth boded well for the services sector. That said, manufacturing output weakened from Q3 in October–November, leading to a sharper fall in goods exports in Q4 as a whole than in Q3. In Q1 2025, our panelists expect sharper GDP growth as monetary policy easing boosts domestic demand and export front-loading ahead of possible U.S. tariff hikes supports the external sector. In other news, the government is reportedly planning to sell USD 3.5 billion in global bonds in 2025—less than last year—and may need to borrow more heavily in domestic markets as global uncertainty remains high.

Philippines Economic Forecasts

Projections out to 2034.

53 indicators covered including both annual and quarterly frequencies.

Consensus Forecasts based on a panel of 36 expert analysts.

Want to get insight on the economic outlook for Philippines in the coming years? FocusEconomics collects projections out to 2034 on 53 economic indicators for Philippines from a panel of 36 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Philippines economy. To download a sample report on the Philippines' economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.

Philippines Economic Indicators

2019 2020 2021 2022 2023
Exchange Rate (PHP per USD, eop) 50.65 48.02 50.99 55.73 55.38
Exchange Rate (PHP per USD, aop) 51.78 49.60 49.29 54.51 55.63
Unemployment (% of active population, aop) 5.1 10.4 7.8 5.4 4.4
Target Reverse Repurchase (RRP) Rate (%, eop) 4.00 2.00 2.00 5.50 6.50
Inflation (CPI, ann. var. %, eop) 2.4 3.3 3.1 8.1 3.9
Government Consumption (ann. var. %) 9.1 10.5 7.2 5.1 0.6
Current Account Balance (USD bn) -3.0 11.6 -5.9 -18.3 -11.8
Private Consumption (ann. var. %) 5.9 -8.0 4.2 8.3 5.6
Current Account Balance (% of GDP) -0.8 3.2 -1.5 -4.5 -2.7
Inflation (CPI, ann. var. %, aop) 2.4 2.4 3.9 5.8 6.0
External Debt (USD bn) 83.6 98.5 106.4 111.3 125.4
External Debt (% of GDP) 22.2 27.2 27.0 27.5 28.7
Fiscal Balance (% of GDP) -3.4 -7.6 -8.6 -7.3 -6.2
Merchandise Exports (ann. var. %) 2.3 -8.1 14.5 6.5 -7.5
Money (ann. var. of M2 %) 10.9 10.3 8.9 7.8 6.5
GDP per capita (USD) 3,513 3,314 3,578 3,642 3,906
Domestic Demand (ann. var. %) 5.6 -12.2 7.4 8.9 5.0
GDP (USD bn) 377 362 394 404 437
10-Year Bond Yield (%, eop) 4.45 3.02 4.82 7.01 5.95
Merchandise Exports (USD bn) 70.9 65.2 74.7 79.6 73.6
Economic Growth (GDP, ann. var. %) 6.1 -9.5 5.7 7.6 5.5
Exports (G&S, ann. var. %) 2.6 -16.1 8.0 11.0 1.4
GDP (PHP bn) 19,518 17,952 19,411 22,028 24,319
Imports (G&S, ann. var. %) 2.3 -21.6 12.8 14.0 1.0
Economic Growth (Nominal GDP, ann. var. %) 6.9 -8.0 8.1 13.5 10.4
International Reserves (months of imports) 9.4 14.7 11.2 8.4 9.9
Merchandise Imports (ann. var. %) -1.1 -19.5 30.1 17.4 -8.0
Merchandise Imports (USD bn) 111.6 89.8 116.9 137.2 126.2
Fixed Investment (ann. var. %) 3.9 -27.3 9.8 9.8 8.2
Manufacturing Production (ann. var. %) 3.8 -9.8 8.9 4.9 1.3
Public Debt (% of GDP) 39.6 54.6 60.4 60.9 60.1
Population (million) 107 109 110 111 112
International Reserves (USD bn) 87.8 110.1 108.8 96.1 103.8
Inflation (PPI, ann. var. %, aop) -2.3 -4.6 -1.8 6.5 1.4
Remittances (USD bn) 25.6 25.6 27.0 28.0 33.5
Stock Market (ann. var. of PSEi %) 4.7 -8.6 -0.2 -7.8 -1.8
91-Day Treasury Bill (%, eop) 3.00 1.02 1.13 4.09 5.00
Merchandise Trade Balance (USD bn) -40.7 -24.6 -42.2 -57.6 -52.6
Foreign Direct Investment (USD bn) 8.7 6.8 12.0 5.9 6.2
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