Philippines’ GDP Growth Surges, to Become Upper Middle-Income Economy by 2022

May 2019

A report by IHS Markit has forecasted Philippines’ GDP to double within the 2019-2026 period from USD 330 billion to USD 672 billion. Although the growth is expected to decelerate from now until 2020, it will remain above 6% . By 2020, GDP per capita is expected to exceed USD 4,000, the threshold after which a country is considered to be in the upper middle-income bracket according to World Bank standards.

Among the key drivers for growth are the government’s large-scale Infrastructure spending, remittance inflows from Overseas Filipino Workers (OFW) and increased private consumption as well as growth in service exports.

Challenges are seen in the unfavorable business climate and weak Infrastructure. Moreover, the economy remains vulnerable to natural disasters, such as earthquakes and frequent typhoons.

(Sources: Philippine Star; Manila Bulletin)