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.

Nominal GDP of USD 462 billion in 2024.

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

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.

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

Sector Analysis

In 2022, services accounted for 62.4% of overall GDP, manufacturing 16.2%, other industrial activity 12.0%, and agriculture 9.4%. Looking at GDP by expenditure, private consumption accounted for 76.5% of GDP in 2023, government consumption 14.2%, fixed investment 23.3%, and net exports -14.0%.

International trade

In 2023, manufactured products made up 79.5% of total merchandise exports, mineral fuels 1.1%, food 8.4%, ores and metals 7.9% and agricultural raw materials 1.2%, with other categories accounting for 1.9% of the total. In the same period, manufactured products made up 65.3% of total merchandise imports, mineral fuels 15.8%, food 13.9%, ores and metals 4.3% and agricultural raw materials 0.6%, with other goods accounting for 0.1% of the total. Total exports were worth USD 73.30 billion in 2024, while total imports were USD 127.60 billion.