The Philippines:
The world’semerging growth engine
The Philippine economy is one of the fastest growing globally, and is projected to become one of the biggest economies in the world. The country has a vibrant economy of over 100 million people with a young workforce at 26 years median age who are highly skilled, proficient in English, and very adaptable.
The Philippine Economy
The Philippine Workforce:As of November 2021
110 million
49 million
26 years old
6.5%
16.7%
796,576
300,880
Exports 2020
US$ 65.2 billion
Electronics, Other manufactured goods, Other mineral products, Machinery and transport equipment, Ignition wiring set
CN
US
JP
SG
TH
Imports 2020
US$ 89.8 billion
Electronics, Mineral fuels and lubricants, Transport equipment, Industrial machinery and equipment, Iron and steel
CN
JP
KR
ID
US
Foreign Direct Investment
Net inflows, Q1-Q3 2021
Equity capital origin
SG
JP
US
NL
Invested mostly in
Rising Economy
The Philippine economy has been growing rapidly at a compounded annual growth rate of 6.4% (10-yr CAGR starting 2009).
The country's growth has been hampered by the pandemic due to the tight restrictions placed by the government; COVID-19 cases and deaths in the country per 100,000 people are significantly below the world average, preparing the economy for a steady and sustainable rebound. The Philippine economy grew by 5.6% in 2021, and is projected to grow by 5.9% in 2022.
3rd fastest growing economy in Asia in 2022 (5.9% Real GDP growth)
Global Economic Prospects, The World Bank
6.3% Real GDP 2022 forecast
January 2022 World Economic Outlook Update, IMF
19th biggest economy in the world in 2050 (US$2.5 trillion GDP in MER terms)
The World in 2050, PWC
44% increase in Foreign Direct Investments (Net Inflows)
2021 Q1-Q3 vs preceding year, Bangko Sentral ng Pilipinas
+ 21% increase in foreign investments in 2020
Philippine Economic Zone Authority
13% increase in manufacturing investments in 2020
Philippine Economic Zone Authority
27 Free Trade Agreements Signed / Negotiations/ Under Study
Asia Regional Integration Center
Signed Agreements:
- Regional Comprehensive Economic Partnership
- ASEAN Free Trade Area
- ASEAN-Republic of Korea Comprehensive Economic Cooperation Agreement
- ASEAN-Japan Comprehensive Economic Partnership
- ASEAN-India Comprehensive Economic Cooperation Agreement
- ASEAN-Hong Kong, China Free Trade Agreement
- ASEAN-People's Republic of China Comprehensive Economic Cooperation Agreement
- ASEAN-Australia and New Zealand Free Trade Agreement
- Japan-Philippines Economic Partnership Agreement
- Philippines-European Free Trade Association Free Trade Agreement
Favorable Investment
The government has been rationalizing taxes and investment incentives, and continues to do so to attract more investors and to sustain the growth momentum.
Philippines' credit rating has been steadily increasing since 2009. The country has achieved Investment Grade rating from the three biggest rating agencies.
S&P Global
BBB+ / STABLE
Moody’s
BAA2 / STABLE
Fitch
BBB / NEGATIVE
- For export market enterprises
- 4-7 years income tax holiday (ITH)
- After ITH, a 10-year Special Corporate Income Tax (SCIT) of 5% on Gross Income or a 10-year Enhanced Deductions (ED)
- For domestic market enterprises
- 4-7 years Income Tax Holiday (ITH) followed by a 5-year Enhanced Deductions (ED)
- After ITH, a 5-year Enhanced Deductions (ED)
- Incentives for both export and domestic enterprises:
- Additional 2 years ITH for projects or activities located in areas recovering from armed conflict or a major disaster
- Additional 3 years ITH if a registered enterprise fully relocates outside of the National Capital Region
- Duty exemption on importation of capital equipment, raw materials, spare parts or accessories
- VAT exemption on importation and VAT zero-rating on local purchases of goods and services
The Philippines continues to pursue reforms to improve the investment climate in the country.
- Corporate Recovery and Tax Incentives for Enterprises Act (R.A. 11534)
- The Ease of Doing Business Act (R.A. 11032)
- Improved efficiency, accountability, and transparency of government procedures
- The Foreign Investments Act (R.A. 7042)
- Liberalized the entry of foreign investments up to 100% ownership
- The Innovative Startup Act (R.A. 11337)
- An Act Amending R.A. 8762 Retail Trade Liberization Act of 2000 (R.A. 11595)
- Proposed Amendments to the Foreign Investment Act
- E.g., allowing foreigners to invest 100% equity in certain domestic market enterprises
- CEO Magazine (2020) and US News (2021) have cited The Philippines as one of the top countries to invest in.
Robust Talent Pool
Hundreds of thousands of Filipinos complete higher education each year, giving you a huge highly-skilled and productive talent pool.
Filipinos are quite adaptable and learn pretty quickly. Filipinos are known for their high level of commitment to their job and are customer-oriented. The huge number of Filipinos (over 2 million) working abroad is a testament to the competitiveness of the Filipino workforce.
High supply of potential skilled workers (over 800k from Higher Education and 300k from STEM)
2019 graduates, Commission on Higher Education
4th in Asia in Skills of Current Workforce
The Global Competitiveness Report 2019, World Economic Forum
2nd in Asia Pacific and 17th globally in gender equality
Global Gender Gap Report 2021, World Economic Forum
10th in Asia in the World Talent Ranking
World Talent Ranking 2020, IMD World Competitiveness Center
7th in Asia in country’s productive knowledge
The Atlas of Economic Complexity, Harvard Growth Lab
Young and huge pool of workforce - median age of 26 years and a 49 million labor force
Philippine Statistics Authority
Proficient in English: 3rd in Southeast Asia, 5th in Asia
TOEFL iBT Test 2019
Infrastructure-Ready
The country has hundreds of economics zones (and counting) that are equipped with the necessary infrastructure to support your business.
Economic zones have world-class infrastructure ready to accommodate manufacturing facilities.
- Fully secured area
- Clean and uninterrupted power supply
- Adequate water supply
- State-of-the-art telecommunications
- Wastewater Treatment Facilities
Total Economic Zones
Manufacturing Economic Zones
Agro-Industrial Economic Zones
Philippine Economic Zone Authority
Build! Build! Build!
The US$94 billion Build! Build! Build! Infrastructure Program of the PH government is meant to bring about significant infrastructure growth in the country to catch up with rapid urbanization and population growth.
9,845
KM of roads
175
KM Leading to Economic Zones
2,709
BridgeS
800
Shipping Ports
4,536
Flood control projects
243
Seaport projects
70
Airport projects
Tropical Paradise
Work and live life! Bask in the tropical paradise of crystal clear beaches, refreshing waterfalls, lakes, and spectacular mountain peaks — the list goes on.
Home of the best beaches in the world according to Forbes, CNN, etc.
Forbes and CNN
One of the only 17 mega biodiverse countries in the world
USAID
UNESCO World Heritage Sites Banaue Rice Terraces, Tubbataha Reef, Vigan City, Baroque Churches
UNESCO
One of the world's friendliest/ most welcoming countries according to Forbes & BBC
Forbes and BBC
