First Metro Investment Corporation

Confidence is growing that the Philippines economy will rebound in 2021 despite the ongoing economic impact of the COVID-19 pandemic

Philippines GDP hits the brakes as Covid-19 impacts the 2020’s economic outlook

Investors are on a rollercoaster ride as the spread of the COVID-19 widens globally. Looking to the future, the Philippines government is seeking to support and stimulate the nation’s economy.

Amid unanticipated upheavals, bearish financial markets and global growth disruptions, the Philippines economy continues to show remarkable durability

Domestic demand will be the key economic driver for growth in the Philippines 2020, on the back of increased government spending, relatively benign inflation and supportive monetary policies. However, the full effects of the coronavirus outbreak are yet to be calculated.

With inflation under control and a revitalised Build, Build, Build programme, there is optimism that Philippine growth will accelerate in 2020.

The Philippines is on track to meet its key 2019 targets. With one of the highest GDP’s in Asia, inflation falling to a new low, and international reserves on the rise, this should be enough to attract investors.

With one of the fastest growth rates in Asia, good news on the job front, plus lower than expected inflation in September, the Philippines economy approaches the year’s end in good condition.

Philippines inflation continued its downward trajectory in August, falling to 1.7%, the lowest in 34 months. With GDP growth holding steady, First Metro Corporation president Rabboni Francis Arjonillo predicts tax reforms will encourage further foreign investment.

The second half of 2019 should see the Philippines economy regaining momentum as increased government spending, combined with the possibility of further central bank rate cuts, look set to tempt investors back in.