BY THEPHILIZNEWS STAFF
The Philippines is among the APEC economies seen to benefit from emerging opportunities in greenfield investments and artificial intelligence (AI), even as regional growth slows amid global uncertainty, according to the latest APEC Regional Trends Analysis.
The report noted that announced greenfield projects in APEC reached US$595 billion in 2024, up 56 percent from 2021, reflecting investor confidence in new capacity and innovation. “Greenfield investments in APEC remain resilient, driven by the shift toward strategic and high-growth sectors amid digitalisation and structural transformation,” it said.
APEC Policy Support Unit Director Carlos Kuriyama, analyst Rhea Crisologo Hernando, and researcher Glacer Niño Vasquez underscored that digital technologies, particularly AI, are poised to amplify these gains. Modeling suggests that AI adoption, treated as a productivity shock, could raise GDP by 1.3 to 3.9 percent.
On average, APEC economies already score above global levels in AI readiness, highlighting strong potential to capture digital dividends. However, gaps in digital skills and uneven capacity across the region remain barriers to inclusive adoption.
“Closing these gaps will be key to unlocking AI’s full economic potential and ensuring that its benefits reach all people, across communities, sectors and economies,” the report said.
Despite the resilience of new investments and digital innovation, APEC warned of lingering downside risks — from policy uncertainty and geopolitical tensions to elevated debt levels carried over from the pandemic.
APEC’s growth slowed to 3.5 percent in Q1 2025, down from 3.8 percent a year earlier. Regional growth is now projected at 3.0 percent in 2025 and 2.9 percent in 2026, reflecting weaker demand and global volatility.
Early-year trade gains were buoyed by businesses rushing shipments ahead of possible restrictions, with merchandise exports and imports up 5 percent and 7.7 percent, respectively. However, APEC economists cautioned that momentum may fade as these temporary factors subside, while services trade already shows signs of slowing.
For the Philippines, the findings reinforce the urgency of sustaining its digital transformation agenda and attracting more greenfield investments in high-value sectors such as technology, renewable energy, and advanced manufacturing. With its young talent pool and strong digital adoption, the country is well positioned to capture new opportunities that could strengthen both its domestic economy and APEC’s growth story.
