The COVID-19 pandemic has dealt a severe blow to the Philippine economy, shrinking the GDP by 9.6 per cent in 2020 (Source: GDP sinks by deeper 9.6% in 2020 after data revisions). This year, however, GDP is expected to grow at around 5% thanks to good macro-economic fundamentals, remittances by Filipinos abroad and the country’s business process outsourcing (BPO) revenues (Source: PH economy seen rebounding by 5-6% in 2021).
Digitalisation efforts have been fast-tracked. E-commerce is also expected to grow by 37 percent CAGR between 2019 and 2024 (Source: E-Commerce in the Philippines).
The resilient economy, recovering business confidence and better than expected competitiveness outlook are prompting investors to take a closer look at the Philippines and the opportunities it offers. The manufacturing sector has been the leading recipient of foreign investment, followed by food processing as well as the banking and BPO sectors.
Philippine conglomerates drive up to 80 per cent of revenues and consider Australia a strategic trade and investment partner.
Almost A$28 billion (2019) 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: National Economic and Development Authority).