Driven by broad-based expansion in domestic demand, the Philippine economy
continues to perform strongly with an annual GDP growth rate of 6.9 per cent in the
September quarter of 2017 (the strongest growth since Q3 2016 and above
China’s Q3 annual growth). According to the World Bank, the Philippines economy is set to grow between 6.5 to 7.5 per cent and ranks as the world’s tenth
fastest growing economy. The current administration aims to reach 7 to 8 per cent growth annually over the next six years, with a A$23.36
billion infrastructure plan to 2022 and a tax reform proposal pending at
the Senate (Source: Rappler,
Philippines overtakes China in economic growth again
, 16 November 2017).
Robust economic growth, rising business confidence, and improved
competitiveness outlook are prompting investors to take a closer look at
the Philippines and the opportunities it offers. Foreign Direct Investment
(FDI) to the Philippines reached A$8.1 billion in the second half of 2017 (Source: Central Bank of the Philippines). The manufacturing
sector has been the leading recipient, with food processing, as well
as the banking and business process outsourcing (BPO) sectors. The
Philippines is set to release a new foreign investment negative list that
is said to be “drastically shorter”, thereby presenting a more “aggressive
liberalisation” and opening the country to further foreign investment (Source: GMA News Online,
PHL to release new foreign investment ‘negative list’ before end of
, September 2017).
Over A$2.2 billion of foreign aid from multi-lateral development banks
(MDB) and international donor agencies (IDA) flow into the Philippines,
largely into infrastructure, education and capacity building programs (Source:
Foreign Aid Transparency Hub).
Bilateral trade between the Philippines and Australia in 2016 was valued at
A$4.3 billion and has grown 50 per cent since 2010 (Source:
Composition of Trade 2015-16
The Austrade office in the Philippines is also responsible
for Guam and Micronesia
More information on doing business in the Philippines
ASEAN NOW – Insights for Australian Business
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