The Philippines was among the fastest growing Southeast Asian economies in 2018 with a GDP growth rate of 6.5%, driven largely by private consumption. Looking ahead, a solid labour market, healthy consumer confidence and higher accessibility to domestic financing will support consumer spending. Government spending and the implementation of President Duterte’s plan to spend US$180b on infrastructure over the next decade will add further upside to the outlook. GDP growth is forecasted at 6.7% p.a. to 2023.
Per capita incomes in the Philippines rose 50% in the ten years to 2018. Incomes are expected to expand at a robust pace over the next five years consistent with the strong growth outlook.