IHS Economist: PH a 1-Trillion Economy by 2030
Economist says Aquino administration transformed the Philippines from “Pussycat to a Tiger Economy”, having a projected economic worth of 1 trillion by 2030.
According to IHS Global Insight economist Rajiv Biswas, the Philippines can become a $1-trillion economy by 2030 as long as it expands 6% annually over this particular investment horizon, and of course, if the new administration is faithful in sustaining reforms in both the economy and government. Thankfully, the country’s gross domestic product (GDP) can be maintained in the next four years.
“The total size of the Philippines’s economy is projected to grow from $300 billion in 2016 to $700 billion by 2025, becoming a trillion dollar economy by 2030. This will make the Philippines one of the leading emerging markets in Asia,” said Biswas.
The Philippines’ GDP has expanded 6.2% on average yearly under six years of President Benigno Aquino, III’s administration--a notable accomplishment that hasn’t been achieved since the 1970s. Key growth engines that contribute to this growth include the inflow of revenues from the growing Information Technology Business Process Outsourcing Industry (IT-BPO) industry and remittances from overseas Filipino workers (OFWs).
Aside from doubling since 2008, the IT-BPO sector has also garnered $2 billion last 2015 and has provided 1.2 million jobs. The same is expected this year, the industry hoping to generate $25 billion while also giving at least 225,000 jobs to Filipinos. Another sect that has benefited from this IT-BPO growth is the company’s real estate, as these BPO centers and offices have spurred the demand for more office spaces and business centers.
During this particular surge in the economy, it’s a must for the new administration to keep persevering in terms of getting foreign investments for manufacturing and infrastructure, which would give manufacturing exports and employments a boost.
Although the recent elections have seemed to make investors nervous, causing a rather volatile mood in the local financial markets, Finance Undersecretary and Chief Economist Gil S. Beltran said that this may stabilize “by the second half of the year.”