Favourable demographics, ongoing structural reforms, and an increasing openness to foreign participation bode well for the prospects of the Philippine economy over the medium to long term. In 2019 cooling inflation as a result of easing commodity prices and the implementation of supply-side policies have improved business sentiment, while the general endorsement of President Rodrigo Duterte’s agenda in the mid-term Congressional elections paves the way for increased infrastructure investment under the flagship Build Build Build programme, which aims to ease congestion, lower transport costs and reduce regional inequality. As the need for imported materials for these projects grows, export diversification will be key to combating the
widening trade imbalance. Tourism remains a priority growth sector,
with a record number of visitors in 2018. As doing business in the country becomes easier, thePhilippines is poised to become an increasingly attractive investment destination for years to come.