Philippines to remain among Southeast Asia's fastest-growing economies

The Philippines is set to emerge as the second fastest-growing economy among the six major Southeast Asian countries, with projections indicating a growth rate of over 6 percent over the next decade.

According to the Southeast Asia Outlook 2024-2034 report, published on Thursday by the Angsana Council in collaboration with Bain & Co. and DBS Bank, the Philippines is anticipated to experience an average growth rate of 6.1 percent. This places it just behind Vietnam, which is expected to lead with a 6.6 percent growth rate.

"Vietnam, Indonesia, and the Philippines are poised to be the fastest-growing economies in the region, with Vietnam maintaining the lead," the report noted.

The forecasted growth rate for the Philippines is set to outpace that of Indonesia at 5.7 percent, Malaysia at 4.5 percent, Thailand at 2.8 percent, and Singapore at 2.5 percent.

Key drivers for this anticipated growth include supportive government policies, significant investments in infrastructure, and a surge in foreign direct investments (FDI) in renewable energy projects. Additionally, the expanding population and workforce are contributing to this optimistic outlook.

The report highlighted that the Philippines, alongside Vietnam and Indonesia, has also seen an increase in per capita spending on education, which supports long-term economic development.

Infrastructure improvements have been notable in several Southeast Asian countries, including Singapore, Thailand, Malaysia, and the Philippines. In the Philippines, renewable energy projects like wind and solar farms are enhancing the sustainability of the energy mix and extending electricity access to remote regions.

On the political front, the report acknowledged positive developments in the Philippines, including advances in human rights, foreign policy, and economic reforms.

However, the report also cautioned that challenges remain. The country continues to lag behind in education and infrastructure compared to some of its regional peers, which could hinder growth. Additionally, geopolitical tensions, particularly with China, could pose risks to economic stability and recovery.