“…It is wise to consider the strong fundamentals of the Philippine economy (demographic dividend, strategic geographical location in the most dynamic economic region in the world today—the Indo-Pacific region—and vast natural resources, among others) as the main reasons for investing in the Philippines…”
Over the medium term (next five to six years), the upside is the possibility of growing at 8 to 10% per annum in GDP… It cannot be denied, [however], that the less desirable growth of 6 to 7% will still be among the highest in the Indo-Pacific region in the coming five to six years. Most analysts were surprised with the robust growth of the last quarter of 2021 of 5.7% (formerly estimated at 5.6%)… Especially strong were the growth rates in Industry (9.5 %) and its sub-sectors: Construction (18.5%), Mining and quarrying (7.9 %) and Manufacturing (7.2 %).
Over the medium-term… even bigger amounts will be spent through the PPP mode from foreign direct investors taking advantage of the newly amended Public Service Act by investing heavily in more airports, railways, subways, tollways, telecommunications, expressways and tollways.
As reported by the UK-based think tank Pantheon Management Macroeconomics, the Philippines’ PMI in March 2022 “was the star of the show among emerging markets in the ASEAN region.” Among the industries that grew the fastest during the first quarter of 2022 are coke and refined petroleum, food products, computer and electronics, chemicals furniture, non-metallic mineral products, machinery and equipment, and basic metals.
As the economy opens up more in the second semester as restrictions pertaining to the pandemic reach zero level, the transition to the next Administration will see even brighter prospects for the whole industrial sector, including the mining sector that is enjoying high prices for its mineral products, especially nickel, copper, gold, and coal.
In the second installment of his article “Transitioning to the Next Administration” published in Manila Bulletin, Dr. Bernardo Villegas shares the robust industries in the Philippine market that is teeming with golden opportunity especially for Foreign Direct Investors, propagated by the newly amended Public Service Act.
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