The Covid-19 pandemic has caught the world by surprise – both first world countries and third world countries alike. Despite this, nations around the globe are sure to bounce back from this challenge as we try to navigate the situation in what we call as the “new normal.” Looking on the bright side, this trying time has also given rise to a few positive outcomes such as the further development of new businesses and industries like e-commerce where people had to rely on buying their needs (and wants) online and this business is definitely here to stay. But e-commerce is not the only field that has a promising outlook. In this article, we take a look at what the Philippine market looks like post-pandemic and what investors can look forward to.
According to renowned economist, Dr. Bernardo Villegas, he expects “a GDP growth of 2 to 4 percent for the whole year of 2021 and a full recovery of the pre-pandemic 6 percent growth of GDP [only] in 2022, coinciding with the election year. Because of the low base from which GDP will grow in 2022, we may experience an 8 to 10 percent during that year.” Here, he emphasizes that “the big comeback will come in 2022” due to several factors.
One of which is the high amounts of remittances from our Overseas Filipino Workers (OFWs) coupled with the continued demand in the BPO-IT industry as well as the improving purchasing power of the Filipinos as more regular work returns again. With this, Dr. Villegas justifies his expectation of a “GDP growth rates starting 2022 to be closer to 7 to 8 percent annually.” He explains that “these remittances and the earnings of the more than 1.4 million BPO-IT workers will lead to a recovery of consumption as the primary engine of growth of the economy.”
Secondly, the country’s position as a “a major exporter of high-value agribusiness products” continues to be predominant and will continue to receive recognition with the help of the free trade agreement made by the ASEAN Economic Community (AEC). To add to this, on November 14, 2020, “the Regional Comprehensive Economic Partnership or RCEP was forged which brings in five of the six “dialogue partners” with which the AEC has already separate free trade agreements: Australia, China, Japan, New Zealand, and South Korea. The RCEP now constitutes the world’s largest trading bloc.”
If the Philippines is able to sustain its agriculture sector, countries especially in Asia, like China, Japan and South Korea can become the country’s main market where we can gain “tariff-free exports of high-value food products.” The key here is to strengthen the agribusiness field to help increase exportation and result to becoming a high-middle income country with “high-value agricultural products” towards 2026 as projected by Dr. Villegas.
Thus, it can be said that the BPO-IT and agricultural industries are both sectors with which Foreign Direct Investors or FDIs should keep an eye out on. So, how can you, as an FDI start? By collaborating with the leading research and consultancy services firm in the Philippines. The Center for Research and Communication, more commonly known by its acronym, CRC boasts of its proven expertise on various fields such as digital, energy, transportation and logistics as well as food and agribusiness. It is also considered as the premiere consulting group due to its numerous successful projects with the different LGUs in the country. Through CRC’s help, you can effortlessly tap the Philippine market and reach your goals with customized packages for your business’ needs. To learn more contact CRC at +639054280727 or email [email protected].
- Villegas, Bernardo M. “Philippine Society After the Pandemic (Part 1)”, 11 January 2021: https://www.bernardovillegas.org/index.php?go=/Articles/1072/
- Villegas, Bernardo M. “Philippine Society After the Pandemic (Part 2)”, 11 January 2021: https://www.bernardovillegas.org/index.php?go=/Articles/1073/
The Center for Research Communication (CRC) is the research and consultancy link to Philippine business opportunities, uniquely poised to help you with business feasibility evaluation, demand and supply analysis, partnership development, project impact evaluation, value chain analysis, customized solutions for design thinking, data analytics and insights generation, and development of business strategies, and consultancy services for investors in Philippine market.