Despite of global downfall in the third quarter of 2015, Philippines is one of the strongest markets among emerging nations
The latest report published by the Asian Development Bank this week “Asian Development Outlook 2015 Update” shows positive perspectives for the Philippine GDP growth in 2015 and 2016 – 6% and 6.3% respectively. Retail trade, Business Process Outsourcing, tourism and real estate services are the major contributors for the services sector, one of the main drivers of GDP together with manufacturing. But following the flow of most Southeast Asian countries, the Philippines also had its economic projections decreased due to the effects of global issues.
Why Philippines remains a strong economy?
The report appoints the private consumption as one the major factors for the strong performance of the country’s economy. Household consumption, especially of food and beverages, aligned with the relative low inflation, higher employment and better job prospects – mainly in the services sector –are the key elements of this economic growth. The rising remittances from overseas Filipino workers, which is responsible alone for almost 10% of the country’s GDP, plays an important role as it enables the Philippine economy to diversify its source of capital.
Except for Vietnam and Malaysia, all Southeast Asian countries had their growth forecast slowed. In the Philippines, and according to the ADB, this is due to the slow public spending in the first months of the year. However, Philippines still ranks as one of the leading positions for the 2016.
New Business Registered
Since Philippines remains one of the strongest markets among emerging nations, it does not come as surprise that more companies are looking to register its business in the Philippines. The latest number of new business registered, was measured in 2012, 16143.
The man factors for this increase and that distinguish the Philippine economy are the low cost of doing business, qualified and abundant labor force and the unlimited business opportunities.
If you would like to understand more about the Philippines and the benefits of securing a business permit to your company, please contact us.