Philippine could become Asia’s ‘superstar’

The Philippines could emerge as a “superstar” in Asia, driven by strong growth prospects for services exports and investments, according to HSBC Philippines.

HSBC Global Research forecasts Philippine GDP growth to reach 6.7% by 2026, potentially making it one of the region’s top performers.

“This is further complemented by the fact that service exports continue to rise and even outpace the growth of international remittances, while foreign direct investments maintain a promising outlook with historic levels of foreign investments approved,” said Corrie Purisima, HSBC Philippines Head of Markets and Securities Services.

HSBC expects GDP growth of 5.8% this year, 6.4% next year and 6.7% in 2026. The government targets 6-7% growth this year.

“Our economic growth has been very encouraging, and we’ve seen all the reforms in the last 20 years. We’ve had two decades of very, very strong reforms that have really prepared the economy to be able to progress to the next level,” Purisima said.

She said growth would be fueled by the country’s young workforce, digitalization efforts and resilient service exports.

“We’re optimistic about what we can do to collectively propel the Philippines from ASEAN’s ‘rising star’ to Asia’s ‘superstar,’” said Sandeep Uppal, President and CEO of HSBC Philippines.

Uppal said most ASEAN economies, including the Philippines, target GDP growth of 5-7%. “What would make us a superstar? I think the superstar would be when we can cross the 7% mark,” he said.

“How much closer can we get to that double digit, which is very aspirational, very elusive but that’s what makes us a superstar.”

He also lauded the government’s efforts to control inflation, which has “allowed the economy to continue to prosper.” Headline inflation averaged 3.3% in the first 10 months, within the central bank’s 2-4% target.

However, Uppal acknowledged that infrastructure remains a major challenge to unlocking the country’s growth potential.

“The biggest opportunity in the Philippines and the biggest challenge I describe in one word: mobility. How do you move people, goods, electricity, water, data. If we get that right, the sky’s the limit,” Uppal said.