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Philippines Economy Update January 2023

economic indicators
  • The Philippine Gross Domestic Product (GDP) posted growth of 7.6 per cent in the third quarter of 2022, exceeding the median analyst forecast of 6.3 per cent. This puts the Philippines firmly in second place in terms of highest growth in the region and on track to achieving the government’s growth target of 6.5 to 7.5 per cent in 2022.
  • The main drivers for growth in the third quarter were wholesale and retail trade, repair of motor vehicles and motorcycles, financial and insurance activities, and construction.
  • Major economic sectors posted positive growth in the third quarter, including agriculture, forestry and fishing at 2.2 per cent, industry at 7.7 per cent, and services at 9.1 per cent.  
  • Household consumption and investment helped drive growth on the demand side as more Filipinos returned to regular activities after the pandemic.
  • The relaxation of border restrictions and simplified travel protocols helped provide a boost to tourism and other related sectors. From February to November 2022, the Philippines recorded 2,219,634 tourist arrivals.
  • The unemployment rate declined and is now at 5 per cent, the lowest since January 2020. This equates to a decrease of 1.8 million unemployed individuals.
  • The Philippine government aims to reinvigorate job creation and reduce poverty rates to single-digit levels. Similar to many other countries in the world today, the Philippines is currently dealing with higher levels of inflation but the government is taking the necessary steps to address this.
  • President Ferdinand Marcos, Jr. has also identified food security as a top priority of his administration. The government will boost domestic agricultural production and sustain agricultural productivity and resilience through climate-adaptive technologies.
  • The Philippines remains committed to supporting businesses and creating a more enabling regulatory and investment environment through the full implementation of landmark reforms such as the amendments to the Public Service Act, Foreign Investments Act, Retail Trade Liberalization Act, and the Corporate Recovery and Tax Incentives for Enterprises or the CREATE law.

Source: Philippine Statistics Authority; National Economic and Development Authority

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Forum on The Philippines’ Role in your Global Business

Forum 23 03 2021

The Philippines is poised to recover strongly post-pandemic due to its strong economic fundamentals and responsive government interventions. With the capability and capacity to host critical activities and high growth industries through its highly skilled, resilient, innovative and adaptable workforce, foreign investors continue to show confidence in the Philippines evident with the country’s FDI experiencing an increase by almost a third in contrast with the decline in global FDIs in 2020.

The DTI-Board of Investments presents “Make It Happen in the Philippines: A Forum on the Philippines’ Role in Your Global Business.” Learn more about business opportunities in the country and our attractive business environment as economic experts discuss updates on the Philippine investment climate and investors share insights and experiences in growing their business in the Philippines. The Forum is on 23rd March 2021 at 09.00 GMT.

The Speakers
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Ramon Lopez Secretary Department of Trade and Industry 
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Ceferino Rodolfo Undersecretary Department of Trade and Industry 
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Rosemarie Edillon Undersecretary National Economic Development Authority 
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Jaime Augusto Zobel de Ayala Chairman & CEO
Ayala Corporation
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Elmar Lutter President & CEO Lufthansa Technik Philippines
Join us in our first virtual event of the year for Europe!
Register HERE
Together, we can Make it Happen! 

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Economy and Trade update March 2021

At a recent meeting of the PBBC with the British Embassy in Manila, we were presented with statistics of the latest economy and trade with the UK.

Economy

Metric2019(year end)2020(year end)2021(Forecast)
GDP Growth5.9%-9.5%6.5% to &.5%
Headline Inflation Rate2.5%2.6%2% to 4%
Unemployment Rate5.3%8.7%7% to 9%
Overseas Remittances£22.08 bn£22.06 bn (-0.9%)4%
Debt to GDP Ratio39.6%55.5%57%
Credit RatingsFitch: BBB (positive)Fitch: BBB (stable)
S&P: BBB+ (stable)S&P: BBB+ (stable)
Moody’s: Baa2Moody’s: Baa2 (stable)

Sources: PH National and Economic Development Authority, Philippine Statistics Authority, and PH Bureau of the Treasury

Trade with the UK

Headline Statistics (released February 2021)

Total trade in goods and services (exports plus imports) between the UK and Philippines was £1.7 billion in the four quarters to the end of Q3 2020, a decrease of 21.8% or £468 million from the four quarters to the end of Q3 2019. Of this £1.7 billion:

  • Total UK exports to Philippines amounted to £796 million (a decrease of 29.2% or £328 million)
  • Total UK imports from Philippines amounted to £886 million (a decrease of 13.6% or £140 million)

The impacts of the lockdown restrictions are starting to show in the statistics. These figures still include around 5 months of normal trade so there will be some lag.

Figures courtesy of: The British Embassy, Manila

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Make it Happen in the Philippines

We are now a week away from the official launch of the ‘Make it Happen in the Philippines campaign’.  To make sure you don’t forget, save the date in your calendars. 

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Makati city skyline. Makati city is one of the most developed business district of metro Manila and the entire Philippines.
Make it happen in The Philippines
Campaign Launch Event Join us on 24 November 2020
The international campaign launch event will include a number of high profile speakers and partners, such as officials of the Philippine government and members of the international and Philippine business community.
DOWNLOAD YOUR INVITATION
     
  We will be joined by key government officials, including President Rodrigo Duterte who will deliver a keynote speech to members of the local & international business community and media   You will find out about business opportunities in the country and our attractive business environment. You will also hear how the Filipino workforce’s resilience and determination have contributed to the expansion and success of foreign companies in the Philippines despite the pandemic.
Make it happen in The Philippines

OFFICIAL WEBSITE

Celebrate with us virtually by joining the interactive online event on 24 November 2020 via Zoom, simultaneously live-streamed on Facebook and LinkedIn:    3:00 PM (Philippines/China) 4:00 PM (Japan/ Korea)  7:00 AM (UK)  8:00 AM (Europe)  11:00 PM (US – West Coast) 
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