Philippines investment hub garners interest from US investors

Finance Secretary Ralph G. Recto touted the Philippines as an attractive investment destination during the Philippine Dialogue held April 17 at the Ritz-Carlton here. He garnered strong interest from American investors.

"Global uncertainties exist due to geopolitical tensions," Recto said in his keynote speech. "However, economists largely agree: the Philippines is positioned to lead growth in the coming decades."

Recto presented several reasons for American investors to consider expanding in the Philippines. These include the country's strong economic growth trajectory. The Philippines is currently the fastest-growing economy in Southeast Asia and is on track to become one of the world's largest economies.

Despite external challenges, the Philippines maintained an average growth rate of 6.6% under President Ferdinand R. Marcos Jr. Multilateral organizations project continued growth, estimating a rate of 5.8% to 6.3% in 2024. They also foresee the country joining the top 20 largest economies globally by mid-century.

Goldman Sachs forecasts the Philippines to become the 14th largest economy by 2075, surpassing France.

Recto attributed the country's growth to robust domestic consumption, which accounts for over 70% of the economy. This is supported by a vibrant labor market.

He also highlighted the Philippines' strong domestic market and projected transition to upper-middle-income status by 2025. This signifies a significant consumer base with increased spending power.

The government's commitment to prudent fiscal management ensures business stability. Credit rating agencies have affirmed high credit ratings due to sound fiscal policies.

Recto emphasized the stable political environment under President Marcos Jr., which fosters a friendly and peace-oriented foreign policy, encouraging business investments. The government has also implemented pro-business policies, improved regulations, and streamlined approval processes to attract investors.

Recto proposed a partnership between the Philippines and the United States based on the demographic advantage of the Philippines' young, tech-savvy workforce.

Following his speech, Recto and other economic managers engaged American investors in a panel discussion to explore investment opportunities in the Philippines. American investors expressed enthusiasm for expanding their operations in the Philippines and praised the government's efforts to improve the ease of doing business.

The Philippine Dialogue aimed to build on the progress made during the Philippines-U.S.-Japan Trilateral Summit. Around 90 executives from U.S.-based funds and corporations, multilateral institutions, and the public sector attended the event.