The Philippines is one of the fastest growing economies in the world. The growth rate keeps increasing every year with a higher GDP than the previous years. With overflowing business and investment opportunities in the Philippines, the country is working towards its way up to becoming one of the top 50 freest economies on a global level in the future.
The Philippines is the 34th largest economy in the world and 13th largest in the Asia continent. It is known as a newly industrialized country because the Philippines is mostly dependent on the agriculture sector for a massive chunk of contribution to the GDP. The service and manufacturing industrial sectors took a hit, and the country was transforming into becoming one of the global leaders in the business market. Gradually the economic status of the country has surprisingly improved in the span of a few years despite the challenges and setbacks it faced.
Economic Status of the Philippines
The economic growth of a country affects its business market in all ways. In case, the Philippines economy is developing the quality of business and investment is improving. According to the 2017 GDP, an estimation value of $1.980 trillion was achieved by the Purchasing Power Parity (PPP) in the country. Drastic change has been recorded in the growth of business sectors like exports and investment market. By the year 2050, the Philippines is expected to become the 16th largest economy in the world and 5th largest economy in the Asian continent. With a population of over 105 million, the country is known for its quality of human resource and diversity is found in rare kinds of natural resources which is a treasure for the country.
What makes an investor to set up a business in the Philippines government distinct from the others is, the country is working on developing the economy and infrastructure in such a way by not compromising the nature and quality of the environment. It is estimated to become one of the top 15 wealthiest economies in the world by the year 2060. However overall development is entirely dependent on the success of the government administration of the Philippines. The GDP growth rate in the country is 6.5%. Keeping the economic growth in mind, the Philippines government has taken several initiatives to cope with the development in the country.
Economic Growth in the Philippines
In the present decade, the Philippines emerged as one of the fastest growing economies in the world with a GDP growth rate of 7.3% which was achieved by a drastic expansion in the business of outsourcing market. As the economy develops, there will be a reduction in the poverty rate. Employment and business opportunities are growing in terms of both number and quality. The industrial sector took a hit with a growth of 7.2% at the end of 2017, and it is responsible for the contribution of 34.8% to the total GDP of the Philippines in 2018. With the increase in the number of employment opportunities, the poverty rate declined to 21.7% in 2018-19 from being 27% in the year 2015, and the quality of human resource developed accordingly. It is estimated that every year almost a million Filipinos are crossing out of poverty with employment opportunities in the best business sectors. The industry sector is responsible for the employment of 16% of Philippine’s workforce. The country has always been welcoming with the foreigners and their business setup in the Philippines. The government is focusing more on the foreign direct investment to expand the market territory to even further distance. Agriculture and manufacturing are leading business in the industrial sector. Among the pharmaceutical manufacturers, the Philippines is one of the largest markets in the Asian continent. The country is home to a lot of metallic resources so, it exports, construction purposes, mining, electronics for shipbuilding. With more than 7000 islands in the region, the Philippines is ranked 4th among the most significant shipping countries in the world. With more foreign investors in their land, the shipbuilding business has been growing.
Impact on Business and Investment Sectors
With the growth in the economy, the Philippines started to witness the development in the business of service and manufacturing sectors. Overall development is seen in the investment field. With booming business opportunities in the Philippines, there are many things which have been impacted by the growth in the economy. Investment opportunities in the Philippines are wide opened to foreigner investors with a promising future and affordable living facilities.
- The Philippines is one of the greatest tourist locations in the world. With more than 7500 islands in the region, the diving enthusiasts consider this a great spot of adventures. At the end of 2017, the travel and tourism sector contributed 27% to the total GDP with PH3.35 trillion.
- In 2018 the number of tourists who visited the Philippines was 732506 in the month of January alone. The average number of Philippine visitors is around 300000 in a year. By the year 2028, the Philippines is estimated to get a turnover of PH6.24 trillion to the economy.
- The service sector of the Philippines has contributed PH1397922 million to the economy by the end of the year 2018. The
- Agriculture has added 9.3% to the Philippines total GDP by the end of the year 2017. The growth rate as of now is 2.4%. The mass of the agricultural land area is over 9.5 million hectares. With the richness of natural resource, it plays a significant role in the food export industry.
- The health acre sector expenditure was PHP721 billion at the beginning of 2018. It contributes 4.5% of the total GDP of the Philippines. A growth of 8% was recorded in the healthcare industry.
The economy of the Philippines is developing drastically with a booming market which is open to business and investment opportunities. The country seems to have a promising future for business enthusiasts. An economy like the Philippines could be a great platform for your company.
If you are looking to register your business in the Philippines, you will experience it as a tedious job. We at Business Setup Worldwide offer a wide range of services which are highly required in the modern market. Our team of experts are well versed with the laws of the Philippines. If you're looking for help regarding business solutions, contact us-we’d be glad to assist.