Philippine Economy Posts One of the Strongest Growth Rates in ASEAN
The Philippine economy is set to be one of ASEAN’s fastest-growing in 2025, driven by strong domestic demand, a booming BPO sector, and expanding digital investments, according to HSBC and BofA. Easing inflation, a solid labor market, and infrastructure projects will further support growth.
HSBC expects the Bangko Sentral to cut rates to 5% by Q3, while BofA raised its GDP forecast to 5.9%, second only to Vietnam’s 6.8%. The peso may face volatility but is expected to remain stable against the dollar.
Bustling skyline of Manila’s financial hub.
One of the strongest economic growth rates among ASEAN-6
The Philippines is projected to achieve one of the strongest economic growth rates among ASEAN-6 countries, with a forecasted 6.3% expansion, second only to Vietnam's 6.8%. This growth is attributed to the country's domestic-oriented economy, which is considered less vulnerable to external trade tensions.
The ASEAN-6 consists of Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
According to BofA, the Philippines, which is domestic-oriented, is "less vulnerable" to the impact of the possible higher tariff that will be imposed by the United States.
These events also provide several benefits for foreign businesses:
Growing Consumer Market – Strong domestic consumption means increased demand for goods and services, making the Philippines an attractive market for foreign brands and investors.
Expanding BPO & Digital Sectors – Foreign companies in outsourcing, IT, and fintech can benefit from a skilled workforce and rising investments in digital infrastructure.
Policy & Infrastructure Support – Government spending on infrastructure and business-friendly policies create opportunities for foreign firms in construction, logistics, and trade.
Economic Stability – A resilient economy reduces risks for foreign investments, ensuring stable returns.