HSBC sees Philippines as regional economic powerhouse

The Philippines is poised to remain one of Southeast Asia's top-performing economies, with projected growth rates exceeding 6% until 2026, according to HSBC Philippines.

"The Philippines has experienced two decades of robust reforms, positioning its economy for significant advancement," said Corrie Purisima, Head of Markets and Securities Services at HSBC Philippines. "This strong foundation, coupled with a favorable demographic profile, is driving substantial economic growth."

HSBC Global Research forecasts Philippine GDP to expand by 6.4% in 2025 and accelerate further to 6.7% in 2026, potentially making it the fastest-growing economy in the ASEAN region.

Key Drivers of Growth:

• Demographic Dividend: The Philippines benefits from a young and growing workforce, with a projected 15% increase in the working-age population between 2025 and 2035. This demographic advantage will fuel domestic consumption and labor force participation.
• Remittances and Services Exports: Overseas Filipino workers continue to send significant remittances, and the country's services exports, including business process outsourcing, have surpassed remittance inflows, further boosting economic growth.
• Government Reforms: Continued implementation of economic reforms, such as trade liberalization and infrastructure development, will create a more conducive business environment and attract foreign investment.

Sandeep Uppal, President and CEO of HSBC Philippines, expressed optimism about the country's potential to become "Asia's Superstar." He emphasized the importance of addressing infrastructure challenges, particularly in transportation and logistics, to unlock the country's full economic potential.

By capitalizing on its strong fundamentals and implementing strategic policies, the Philippines is well-positioned to maintain its position as a regional economic powerhouse.