The World Economic Forum is bullish on the prospects of the Philippines, saying the country can become a $2 trillion economy in the next decade, which is comparable to the size of Canada, Italy, and Brazil today – as long as it continues key reforms and sustain strong economic growth.
“We are very bullish on the Philippines, provided the reforms do continue. I think that this can be, in the coming decade, a $2 trillion economy if there are further investments in education, infrastructure, and also be able to draw on the great competence of the people of the Philippines,” WEF president Borge Brende told a recent press conference.
“Adjust for purchasing power, you can even see the economy is now closer to a trillion; it’s not yet there but it’s closer to a trillion. I would say, if you achieve a growth of 7 to 8 percent, we can talk about a decade perspective,” he added.
If the projection of the WEF is realized, the Philippines could see its economy expand from its current size of about $380 billion based on latest government data.
Interestingly, S&P Global also forecasts the Philippines to become one of the small club of economies in Asia Pacific exceeding $1 trillion in size by 2033, joining mainland China, Japan, India, South Korea, Australia, Taiwan, and Indonesia.
For 2025 until 2028, the Marcos administration said the economy could grow by 6.5 to 8 percent.
Brende said the Philippines has “really shown how resilient it is” in the face of headwinds at home and abroad. This, coupled with a “sound” fiscal policy of the government, made the country more attractive to foreign investors, he explained.
Moving forward, the Philippines should take advantage of the shifting supply chains brought by geopolitical risks, which tend to send investors looking for new markets elsewhere to set up their business.
The story of the Philippines has always been about wasted potential, which is something that the WEF sees yet again this time. In order to maximize that potential, it will need a concerted effort from government and the private sector, especially during these times when shifting supply chains can uncover unique opportunities that can help us turn that potential into reality.*
