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According to the report, the Philippines will soon emerge as the top economic performer in the Association of Southeast Asian Nations (ASEAN), thanks to reforms that have strengthened the country’s global trade position and growth potential, according to HSBC Global Research.
HSBC economist for ASEAN Aris Dacanay said reforms in the Philippines have made the country more influential in the global economy as its share to global trade has risen by 0.11 percentage points since 2018, the second highest in the region. In the next five years, we believe that the Philippines could become ASEAN’s leading performer. Growth was averaging 6.5 percent prior to the COVID pandemic,” Dacanay said.
The report said that in 2025 and 2026, it is expect that the Philippines will be the second fastest growing economy in ASEAN behind Vietnam and the third fastest in Asia. Dacanay cited the International Monetary Fund’s latest World Economic Outlook, in which the IMF projects the Philippines becoming the 28th largest economy by 2029, an improvement from the 33rd rank today and if realized, the five-place jump will represent the most significant ranking improvement among ASEAN economies.
The report also stated that the Philippine economy posted a growth of 6.3 percent in the second quarter, up from 4.3 percent a year ago and the revised 5.8 percent growth in the first quarter of 2024. In the first half, growth averaged six percent. The country embarked on a series of fiscal, structural and institutional reforms over the past two decades.
In addition, from liberalization, fiscal and institutional reform, it is thought that the Philippines has one of the strongest reform narratives in ASEAN, giving the economy the stability it needs for take-off. The key reforms to monitor in the next five years should be the tax reform on passive income and financial instruments as well as the rationalization of Military and Uniformed Personnel pensions.
Metro Manila Philippines
Report source : PHILSTAR GLOBAL
HSBC economist for ASEAN Aris Dacanay said reforms in the Philippines have made the country more influential in the global economy as its share to global trade has risen by 0.11 percentage points since 2018, the second highest in the region. In the next five years, we believe that the Philippines could become ASEAN’s leading performer. Growth was averaging 6.5 percent prior to the COVID pandemic,” Dacanay said.
The report said that in 2025 and 2026, it is expect that the Philippines will be the second fastest growing economy in ASEAN behind Vietnam and the third fastest in Asia. Dacanay cited the International Monetary Fund’s latest World Economic Outlook, in which the IMF projects the Philippines becoming the 28th largest economy by 2029, an improvement from the 33rd rank today and if realized, the five-place jump will represent the most significant ranking improvement among ASEAN economies.
The report also stated that the Philippine economy posted a growth of 6.3 percent in the second quarter, up from 4.3 percent a year ago and the revised 5.8 percent growth in the first quarter of 2024. In the first half, growth averaged six percent. The country embarked on a series of fiscal, structural and institutional reforms over the past two decades.
In addition, from liberalization, fiscal and institutional reform, it is thought that the Philippines has one of the strongest reform narratives in ASEAN, giving the economy the stability it needs for take-off. The key reforms to monitor in the next five years should be the tax reform on passive income and financial instruments as well as the rationalization of Military and Uniformed Personnel pensions.
Metro Manila Philippines
Report source : PHILSTAR GLOBAL
