- The robust service sector is contributing heavily to the Philippine GDP growth.
- The manufacturing industry has been growing rapidly due to the government’s Build Build Build program.
- The Philippine government supports foreign investments with tax incentives and visa streamlining.
- The real estate industry is booming due to the high demand for housing, commercial, and office spaces.
- The young population actively embraces new technology and provides a skilled, English-speaking workforce.
The Philippines’ economy has grown steadily in recent years, surpassing some Southeast Asian neighbors. From a consumer-driven economy to an export-oriented one, the country has undergone significant changes contributing to its economic growth. With its young population, strategic location, and favorable government policies, the Philippines is poised to become one of the top investment destinations in the region.
Philippines’ Current GDP
The GDP growth of the Philippines is one of the highest in the world. It has expanded by more than 6% in the first quarter of 2023. It’s a huge growth, but various factors are attributed to it. Here are five reasons why the Philippines is experiencing such significant economic growth.
Robust Service Sector
The service sector, which accounts for nearly 60% of the country’s gross domestic product (GDP), has been the key driver of economic growth in the Philippines. The industry includes banking, business process outsourcing (BPO), and tourism. BPO alone accounts for 10% of the GDP and employs over a million Filipinos. The country’s proficient English speakers, skilled workforce, and low wages have made it an attractive destination for BPO companies, helping fuel the industry’s growth.
Booming Manufacturing Industry
The Philippines’ manufacturing industry has been growing rapidly, with a current % growth rate of 6.7% per annum. The government’s Build Build Build program, which aims to invest heavily in infrastructure projects like airports, seaports, and railways, has been a significant reason behind the growth. The increase in manufacturing activities has also led to higher exports, contributing significantly to the GDP.
Supportive Government Policies
The Philippine government has been actively introducing measures to lure foreign investors. The government has successfully created a business-friendly environment by providing tax incentives to foreign firms, opening up new sectors to foreign investment, and streamlining visa processes. Additionally, the government has launched several infrastructure
Booming Real Estate Industry
The real estate industry has significantly contributed to the Philippines’ economic growth. The steady increase in demand for housing, commercial, and office spaces has led to the sector’s expansion. The government’s infrastructure projects have further boosted investments in the country’s real estate market. Many foreigners also show a keen interest in the Philippine real estate market, making it a lucrative area for investors.
Young Population
The Philippines’ large, young population is a significant factor in the country’s economic growth. With a population of over 107 million people and over 60% below the age of 30, the country has a vast workforce that is relatively affordable and educated. The country also has a large English-speaking populace, making it a significant outsourcing destination. This young population is also highly receptive to new technology, making the country the adopted home of several tech start-ups.
How to Get Started With Your Investments
You can get started with your investments in the Philippines in various ways. Here are some of them:
Purchase a Home
Buying a house is one of the best investments in the Philippines. The real estate industry is growing rapidly, and returns can be impressive. Because of this, there are many affordable houses and lots for sale in the country. Furthermore, they are very accessible as the infastructure development has also improved the country. You may also benefit from the government’s tax incentives and relaxations for foreign residents.
Open an Offshore Company
The Philippine government offers several incentives for offshore companies, so setting one up can be highly beneficial. It will provide more business flexibility, and you can also benefit from the country’s low corporate tax rates. You will also be able to access a large pool of educated labor, helping your business succeed in the long run.
Employ Experienced Workers
The Philippines has a large pool of talented workers who are highly educated and experienced. Hiring Philippine employees can be beneficial for many reasons, including cost savings, access to a diverse talent pool, and the ability to leverage Filipino culture in your business. Furthermore, their expertise and knowledge of local markets can help you make the most of your investments in the country.
These are just some of how you can start investing in the Philippines. Whether it is real estate, offshore company setup, or anything else, plenty of opportunities are available that all promise excellent returns on investment. So explore these options and begin your journey toward financial success!
