The Philippines could become a $2-trillion economy in the coming decade, according to a World Economic Forum (WEF) executive.
WEF president Borge Brende said this is possible if there are significant investments in education and infrastructure.
“We are very bullish on the Philippines provided that reforms do continue. I think that this can be in the coming decade a $2-trillion economy if there are better investments in education, infrastructure and also able to draw on the great competence of the people of the Philippines,” said Brende.
“If you look at it in the PPP context, adjust for purchasing power, you can even see the economy is now closer to a trillion, it’s not yet there, but it’s closer to a trillion. I would say, if you achieve a growth of 7 percent to 8 percent [annually], we can talk about a decade perspective,” he said.
The Philippines’ gross domestic product was estimated to be at $430 billion in 2023.
Brende said the Philippine economy showed how resilient it is. “But also we are seeing a lot of global business interest in the Philippines. So it’s now the fastest growing economy in the region,” he said.
The Philippines economy expanded by 5.6 percent in 2023, slower than the government’s target range of 6 percent to 7 percent and 7.6-percent growth registered in in 2022.
The government expects a GDP growth of 6.5 percent to 7.5 percent in 2024.
Brende noted the increased investments coming in, although they are still relatively lower than in neighboring countries.
Data from the Bangko Sentral ng Piliponas showed that net inflows of foreign direct investments reached $8.9 billion in 2023, down 6.6 percent from $9.5 billion in 2022.
The top sources of FDIs are Japan, the US, Singapore and Germany.