19 August 2019

Philippines country snapshot

This article is produced by The Economist Intelligence Unit

The Philippine economy will grow in the coming years, driven largely by private consumption. Consumption has been supported by slowing inflation--albeit likely to be short-lived--due to weaker global commodity prices, low unemployment rates of around 5% and constant inflows of personal remittances, which reached $34bn and made up 10.2% of GDP in 2018, though a decline in the US economy, which continues to be a key market for Filipino workers, may slow this flow.

To improve investment flows and ease the potential effects of mounting trade tensions, the Philippines has engaged in multiple free trade agreements (FTA).  As a member of the Association of Southeast Asian Nations (ASEAN), it has signed FTAs with China, South Korea, Japan, India, Australia and New Zealand. On its own, it has agreements with  the European Free Trade Association (Iceland, Liechtenstein, Norway and Switzerland), and with Japan under the Philippines–Japan Economic Partnership Agreement. Currently, the latter is the Philippines’ only bilateral FTA. However, it is keen to forge more to lessen dependence on the US and China.

The business environment in the Philippines has steadily improved, helped by a relatively open market, which is further boosted by the country’s strong macroeconomic position. However, its global and regional rankings still fall in the latest EIU Business Environment Rankings, overshadowed by other countries undergoing greater improvements.

Likewise, the Philippines pales in comparison with other countries in the EIU Technological Readiness Rankings, which assesses 82 economies on how prepared they are to address technological change. Despite significant improvements in mobile internet access across the country, full potential is hindered by an under investment in telecommunications infrastructure. Even with the introduction of new mobile infrastructure, internet speeds remain among the slowest in the region.

Want to learn more? Click and browse by country

Issued by HSBC Holding plc


Interested in expanding your business to ASEAN? Let us help.

Disclaimer

The Association of Southeast Asian Nations (ASEAN)

Written by The Economist Intelligence Unit.

While every effort has been taken to verify the accuracy of this information, The Economist Intelligence Unit Ltd. cannot accept any responsibility or liability for reliance by any person on this article or any of the information, opinions or conclusions set out in this article. The findings and views expressed in the article do not necessarily reflect the views of the sponsor.

The information contained in this ASEAN website is derived from sources we believe to be reliable but which we have not independently verified. HSBC makes no representation or warranty (express or implied) of any nature nor is any responsibility of any kind accepted with respect to the completeness or accuracy of any information, projection, representation or warranty (expressed or implied) in, or omission from, this ASEAN website. No liability is accepted whatsoever for any direct, indirect or consequential loss (whether arising in contract, tort or otherwise) arising from the use of or reliance on this ASEAN website or any information contained herein by the recipient or any third party. If you seek to rely in any way whatsoever upon any content contained in this ASEAN website, you do so at your own risk.

This ASEAN website does not constitute an offer or solicitation for, or advice that you should enter into or start using, any of the arrangement, product or services mentioned in this ASEAN website. Recipients should not rely on this ASEAN website in making any decisions and they should make their own independent appraisal of and investigations into the information described in this ASEAN website. No consideration has been given to the particular business objectives, financial situation or particular needs of any recipient. Any examples given are for the purposes of illustration only.

All the information set out in this ASEAN website is provided in good faith to the best of HSBC’s knowledge and understanding of the current law, rules, regulations, directions and guidelines governing or otherwise applicable to the relevant services offered by HSBC but HSBC makes no guarantee, representation or warranty and accepts no liability as to its accuracy or completeness. Future changes in such law, rules, regulations etc. could affect the information in this ASEAN website but HSBC is under no obligation to keep this information current or to update it. Expressions of opinion are those of HSBC only and are subject to change without notice.

Copyright © HSBC Bank Malaysia Berhad (Company No. 127776-V) 2019. All rights reserved. No part of this ASEAN website may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of HSBC.

How can we help?

You are leaving the HSBC Commercial Banking website.

Please be aware that the external site policies will differ from our website terms and conditions and privacy policy. The next site will open in a new browser window or tab.

You are leaving the HSBC Commercial Banking website.

Please be aware that the external site policies will differ from our website terms and conditions and privacy policy. The next site will open in a new browser window or tab.

You are leaving the HSBC Commercial Banking website.

Please be aware that the external site policies will differ from our website terms and conditions and privacy policy. The next site will open in a new browser window or tab.