Business Consulting BlogThe Philippines: The Reasons Behind FDI Growth and to Invest in This Economy

April 30, 2013

No doubts that 2012 has been a great year to the Philippines economy. 2013 looks brighter and even The World Bank has increased its gross domestic product (GDP) growth forecast for the Philippines to grow to 6.2% in 2013 ,6.4% in 2014 and according to Moody’s, the growth rate could be close to 8% in 2016.

GDP Growth in the Philippines

Foreign Direct Investment has also shown high potential to grow to its highest levels in its economic history. The country’s strong economic growth, new anti-corruption measures, combined with a recent credit rating upgrade from Fitch, have improved the Philippines’ international reputation and foreign companies have begun to look at the Philippines and its growing middle class as a great opportunity to expand their businesses and operations.

Philippines might be acknowledged as the call center capital of the world, but foreign investors should look beyond that and see the potential of the Philippines to reap lucrative rewards with its strong domestic demand and growing population.

The country is certainly not the easiest country to do business in, as the recent World Bank’s Ease of Doing Business Survey has shown, but the resilience of its economy leaves no doubts. This is the time to “take a serious look” and to invest in the Philippines! The consumer sentiment, robust private consumption, increased fiscal spendingbooming services and construction sectors and higher investment and exports will continue to support the country’s economy.

The economy is relying on foreign investors to keep this growth and its reputation is definitely changing among them. Despite the restrictions of the Foreign Investment Negative List, the Philippines still allows 100% foreign ownership in almost all parts of the business sectors and the time frame for the incorporation of both local and foreign companies are just about the same.

Our experiences tell us that the biggest challenge faced by local and foreign investors is deciding which structure to establish when you set up a company in the Philippines. Considering the benefits of each corporate classification and outsourcing is definitely the key – a Consultancy who understands the market place, the methods of targeting the audience and who understands and coordinates with all the government agencies to provide the smoothest transition to the Philippines.

Completing dozens of company registrations for foreign and local investors, our ability to work in the Philippines can help you be part of this economic growth and establish your business or investment in the Philippines.  To obtain more information about the Philippines, please contact us at or visit us in one of our offices in Makati.

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