The Philippine economy is expected to post strong growth in the long term, as an international think tank notes the country will be one of the most economically improved jurisdictions 20 years from now.
Global research firm BMI Research noted the Philippine economy’s long-term potential in its most recent review of emerging-market economies across the world, saying the country’s performance will likely be supported by key characteristics in the economy that will stretch up until 2026.
BMI named the Philippines as one of the “favorite” growth markets in the coming decade, citing positive demographic drivers, business-friendly reform momentum and an attractive balance of risk and reward for investors in domestic industries as the main factors for its long-term attractiveness.
The Philippine economy has been growing above 6 percent in recent years, cementing its name as one of the fastest-growing economies in the region. In the first quarter of the year, the country posted a 6.4-percent growth.
BMI said countries with a fairly younger population, such as the Philippines, will have an edge over other countries in the long term, as more citizens contribute to the economy’s growth and the share of the dependent’s population—or those aged below 15 and above 64—shrinks in comparison to the total population.
This, BMI said, coupled with structural reforms, will be crucial to the sustainability of economic growth. “In addition to a growing work force and an improving business environment, emerging markets require tangible opportunities for both domestic and foreign participants to invest in and drive growth,” BMI Research said.
“Our outperformers, such as Indonesia and [the] Philippines, will offer industry participants both strong growth and larger scale than frontier destinations,” it added.
Using their checklist of positive demographics, structural-reform momentum and industry opportunities, the Philippines joins the ranks of India, Mexico, Indonesia and Argentina as ones with the most enticing GDP prospects in the next decade.
“On average, these countries will climb just over four places in the GDP rankings by 2026, compared to an average of 1.7 and -0.3 places for countries scoring two and one out of three, respectively,” BMI Research said.
“The Philippines will be the standout climber in the rankings, gaining nine places by 2026 according to our forecasts,” it added.
The Philippine Statistics Authority is expected to release the country’s GDP numbers this week.