PH GDP to double by 2026, according to report
The Philippine economy is expected to continue its rapid growth, as the country’s gross domestic product (GDP) is on its way to being doubled between this year and 2026. Moreover, the country is also set to attain upper middle income status by 2022.
In a recent economic research report, market intelligence firm IHS Markit said it is likely for the Philippines’ economic growth of above six percent in the last seven years to continue over the short term. This is despite the expected slightly slower pace of about six percent annually over 2019 and 2020.
“Strong GDP growth is projected to continue over the medium term, with the total size of the Philippines economy expected to double between 2018 and 2026,” IHS Markit chief economist for Asia Pacific Rajiv Biswas said.
A Positive Outlook for the Philippines
Biswas also noted that the long-term outlook for the Philippines is “very positive” as the GDP is seen to double from $330 billion in 2018 to $672 billion by 2026.
According to the report, the country is predicted to become one of Asia’s trillion-dollar economies by 2032 with per capita GDP climbing to approximately $8,200.
The report also showed that “sustained rapid economic development will result in a significant reduction in poverty levels and accelerate progress towards meeting the UN Sustainable Development Goals.”
Indicated in the report as a growth engine is the consistent strength of remittance inflows from Overseas Filipino Workers, which consequently boosts consumption spending.
The rapid growth of service exports, especially from the IT-BPO industry, is also a significant contributor to export earnings and employment growth.
President Duterte’s infrastructure development program is also supporting the country’s momentum in economic growth.
IHS Markit, however, urged the country to promptly address hindrances to growth like weak infrastructure and uncompetitive business climate.
“A key priority will be to make the Philippines more competitive as an investment hub for multinationals, in order to boost exports of goods and services and narrow the trade deficit,” it noted.
