Philippines Expected to be Key Growth Outperformer in Asia-Pacific in 2024
In a recent report by Moody’s Analytics, the Philippines is anticipated to be among the “key growth outperformers” in the Asia-Pacific region this year. This projection is mainly attributed to the rise in exports, an increase in state-led infrastructure spending, and strong growth in tourist arrivals.
According to the report, countries such as Indonesia, the Philippines, and India are expected to excel in terms of economic growth. The recovery in export and domestic demand, along with improved tourist arrivals and government investments in infrastructure, are cited as factors contributing to the growth outlook for the Philippines.
The ratings agency also mentioned that the Philippine economy is poised to exceed pre-pandemic levels this year. In the first quarter of the year, the Philippines recorded a growth rate of 5.7 percent, outperforming Indonesia’s 5.1 percent and India’s 7.8 percent expansion.
With a growth target of between 6 and 7 percent for the year, the Philippines is on track to surpass the overall expansion in the Asia-Pacific region, which is projected at just 4 percent. Despite challenges such as high inflation and lending rates, the Philippine government remains optimistic that economic growth will remain robust.
Key drivers of economic growth in the Philippines include increasing household spending, which accounts for over 70 percent of economic output. Infrastructure spending has also seen a significant increase, with a 15.1 percent climb reported in March.
Furthermore, exports have shown promising growth, with a 26.4 percent year-on-year surge in April, driven by higher sales of electronic products. Tourism receipts have also made a positive contribution to the country’s economic performance, with visitor arrivals in the first five months of the year up by 14 percent compared to the same period last year.
Overall, the Philippines is poised to maintain its status as a key growth outperformer in the region, with various economic indicators pointing towards sustained growth and development in the coming months.
