By Veronica Uy
The Philippines continues to emerge as one of the most resilient and fastest-growing economies in the region, fueled by a young and talented population, a burgeoning middle class, and robust remittances. But what must the country do to sustain its economic momentum?
At Thursday’s launch of the business guidebook “Doing Business in the Philippines 2025,” Paulo Duarte, president of the European Chamber of Commerce of the Philippines (ECCP), said the Philippines has the potential to solidify its position as a prime investment destination.
“We all agree that the Philippine economy has made significant strides, overcoming recent challenges and positioning itself for sustained growth,” said Duarte. “This presents exciting opportunities for deeper collaboration and partnership with Europe and European companies.”
Duarte noted several factors contributing to the Philippines’ growth:
- Resilient economy: A projected 6 percent GDP growth for 2024, driven by remittances from over 10 million overseas Filipino workers, which are expected to surpass $35 billion by the end of the year.
- Moderated inflation: Inflation averaged 3.2 percent in 2024, staying within the government’s target range.
- Youthful demographics: The Philippines’ young and dynamic population, coupled with exceptional English proficiency, remains its greatest asset.
These strengths position the country as a competitive player in the region, but Duarte acknowledged that more needs to be done.
Duarte pointed to recent reforms that create a favorable investment climate, including:
- CREATE MORE Act: Strengthening fiscal and non-fiscal incentives, streamlining approval processes, and enhancing the Philippines’ global investment appeal.
- Green Lane for Strategic Investments: Accelerating the approval of 176 projects valued at P4.5 trillion, particularly in renewable energy and digital infrastructure.
- Ease of Doing Business Measures: Executive Order 32, which simplifies permitting for telecommunications and internet infrastructure, addressing long-standing connectivity challenges.
- Build Better More Program: Over 186 flagship infrastructure projects worth close to P10 trillion aimed at addressing critical infrastructure gaps.
Additionally, the government has embraced innovation with initiatives such as the Industry 4.0 Pilot Factory and the National Artificial Intelligence Strategy Roadmap 2.0. These measures aim to future-proof industries and drive productivity through cutting-edge technologies.
Despite these advancements, challenges remain. “According to the 2024 World Competitiveness Report, the Philippines ranks 52nd out of 67 countries,” Duarte said. “While government efficiency has improved, setbacks in infrastructure and business efficiency are holding the country back.”
The ECCP’s 2024 Business Sentiment Survey reveals that while 53 percent of respondents see improvements in ease of doing business, 75 percent still identify barriers to investment and operations.
“This should not defeat us but rather encourage us to work even harder,” Duarte said.
Moving forward, Duarte said bolstering both physical and digital infrastructure is important to attract more investments and foster sustainable economic growth. He also said ECCP is committed to advocacy, with 365 initiatives carried out in 2024 alone.
At the same time, the ECCP remains optimistic about the upcoming EU-Philippines Free Trade Agreement negotiations, which are expected to strengthen ties between Europe and the Philippines.
“Our agenda focuses on driving increased trade and investments, advocating for policies, and promoting economic liberalization,” Duarte said. “We also highlight sustainability and digitalization, aligned with the Green Economy Program and the European Green Deal.”
As the Philippines continues to position itself as a dynamic and forward-looking economy, the ECCP pledges to work closely with both European and local partners to ensure long-term growth and prosperity. Veronica Uy
