The Philippines’ economy is one of the fastest-growing in Southeast Asia, supported by a young population, strong remittance inflows, and a dynamic services sector. 

With over 115 million people, the country has a large domestic consumer base that fuels demand across retail, housing, and infrastructure. 

Despite global uncertainty, economic growth has remained robust, positioning the Philippines as a rising player in the regional market.

Gross domestic product is anchored by household consumption, which consistently accounts for more than 70 percent of output. 

Services, particularly business process outsourcing (BPO) and financial services, are key drivers, while manufacturing and construction have also expanded under government infrastructure programmes. 

Remittances from overseas Filipino workers provide a steady flow of foreign exchange, supporting household spending and stabilising the balance of payments.

At the same time, the Philippines faces challenges of underdeveloped infrastructure, bureaucratic hurdles, and exposure to external shocks such as commodity price swings and climate risks. 

Yet ongoing reforms, digitalisation, and efforts to attract more foreign direct investment are creating new growth opportunities. 

This combination of resilience and reform underscores the Philippines’ potential as a competitive and consumer-driven economy in Asia.

Key Philippines economic data

These key data points provide a general overview of the structure of the Philippines’ economy.

The Philippines’ GDP in 2024 by sector

Source: Philippine Statistics Authority

Latest Philippines GDP growth forecasts

July 2025: The Philippines was forecast to post GDP growth of 5.6 percent in 2025, down from April’s 6.3 percent projection, according to the ASEAN+3 Regional Economic Outlook Update, July 2025.

June 2025: The Philippines was forecast to grow by 5.6 percent in 2025 and 6.0 percent in 2026, driven by resilient household consumption and a gradual investment recovery, according to the OECD Economic Outlook 2025.

April 2025: The World Bank downgraded its growth forecast for the Philippines to 5.3 percent for 2025, down from the 6.1 percent projection made in October 2024, according to its April 2025 World Bank East Asia and the Pacific Economic Update.

April 2025: The International Monetary Fund (IMF) revised down the Philippines’ GDP growth forecast for 2025 in its April 2025 World Economic Outlook, while inflation expectations were nudged upward. The new projections showed real GDP expanding by 5.5 percent in 2025, a modest downgrade from 5.8 percent in October 2024, with a forecast of 5.8 percent for 2026.

Foreign direct investment in the Philippines

The Philippines recorded just over US$9.5 billion in foreign direct investment in 2024.

The Philippines FDI by sector 2024, PHP/US$ millions

Source: Philippine Statistics Authority

The Philippines’s key industries

The Philippines key industries include:

Mining and natural resources

The Philippines has significant reserves of nickel, copper, gold, and chromite, making mining a strategic sector. 

It is one of the world’s top nickel exporters, supplying a large share to global battery production chains.

Health and fitness industry

The Philippines’ health and fitness sector is expanding, driven by rising urban incomes and growing awareness of wellness and preventive healthcare.

Gyms, boutique fitness studios, and digital fitness platforms are becoming more popular, alongside increased demand for nutrition, supplements, and wellness services.

Manufacturing

Manufacturing is diverse, covering electronics, semiconductors, garments, and automotive parts. 

Electronics exports, especially semiconductors, account for over half of the country’s total exports, making it a critical growth driver.

Agriculture and fisheries

Agriculture remains vital for employment and rural livelihoods, with rice, coconut, bananas, and fisheries as main products. 

However, productivity challenges and vulnerability to climate change limit the sector’s contribution to GDP.

Food and beverage

The food and beverage sector is driven by strong domestic demand, tourism, and an expanding middle class. 

Processed food and beverages are major contributors, with both local brands and multinationals active in the market.

 – Dairy in the Philippines

The Philippines’ dairy market is growing, supported by rising consumer demand for milk, cheese, and other dairy products as incomes increase.

Infrastructure and construction

Government programmes such as “Build, Build, Build” continue to boost construction, transport, and utilities.

Infrastructure development is seen as key to unlocking long-term growth and attracting investment.

Energy

The Philippines relies on coal and natural gas but is also expanding renewable energy projects in solar, wind, hydro, and geothermal. 

Energy security and diversification are central to policy goals.

Financial services

The sector is growing steadily, with strong remittance inflows supporting banking and payments.

Digital banking and fintech adoption are accelerating, broadening financial inclusion.

Digital economy

The Philippines is a major hub for business process outsourcing (BPO) and IT-enabled services.

Growth in e-commerce, fintech, and digital content reflects rapid internet penetration and a young, tech-savvy population.

Trade overview

In 2024, the Philippines’ total external trade in goods reached US$200.87 billion, a modest increase of 0.5 percent from 2023. 

Imports accounted for 63.5 percent of the total, while exports made up the remaining 36.5 percent. 

The country recorded a trade deficit of US$54.33 billion, up 3.3 percent compared with the previous year.

Exports

Exports totalled US$73.27 billion in 2024, down 0.5 percent year-on-year. 

Electronic products dominated, contributing US$39.09 billion or 53.4 percent of total exports. 

Other significant categories included other manufactured goods (US$4.68 billion, 6.4 percent) and mineral products (US$3.01 billion, 4.1 percent). 

By type, manufactured goods accounted for nearly 80 percent of exports. 

The United States was the top destination with US$12.14 billion (16.6 percent), followed by Japan, Hong Kong, China, and South Korea.

Imports

Imports reached US$127.60 billion in 2024, rising 1.1 percent from the previous year. 

Electronic products were the largest import group at US$27.38 billion (21.5 percent), followed by mineral fuels, lubricants and related materials at US$19.06 billion (14.9 percent), and transport equipment at US$11.36 billion (8.9 percent). 

By major trading partners, China supplied the most imports (US$32.83 billion, 25.7 percent), ahead of Indonesia, Japan, South Korea, and the United States.

Regional comparison

The Philippines is one of Southeast Asia’s fastest growing economies, which is a little different from its regional peers.

Indonesia

Indonesia is Southeast Asia’s largest economy, driven by domestic consumption, natural resources, and a growing manufacturing base. 

Strong FDI inflows support infrastructure, nickel, and digital industries.

Vietnam

Vietnam’s export-led economy thrives on manufacturing, electronics, and textiles. 

Rapid FDI growth and trade agreements position it as a regional supply chain hub.

Thailand

Thailand’s economy is anchored in automotive, electronics, and tourism. 

Growth is steady but challenged by political uncertainty and an ageing population.

Malaysia

Malaysia combines a strong manufacturing and services base with abundant natural resources. 

Its economy benefits from electronics exports and a well-developed financial sector.

Laos

Laos depends heavily on hydropower exports, mining, and agriculture. 

Its economy is constrained by high debt and limited diversification.

Cambodia

Cambodia’s growth is driven by garments, construction, and tourism. 

It faces risks from overdependence on a few sectors and limited infrastructure.

FAQ: Economy of the Philippines

Commonly asked questions about the economy of the Philippines include.

What was the Philippines’ GDP growth in 2024?

The Philippines’ GDP grew 5.6 percent in 2024. Growth was driven by services, manufacturing, and construction, supported by strong domestic demand.

What are some of the Philippines’ key industries as of 2024?

Key industries included electronics, business process outsourcing, food and beverage, mining, agriculture, and digital services.

What was the value of the Philippines’ exports and imports in 2024?

Exports were valued at US$73.27 billion, while imports reached US$127.60 billion, resulting in a trade deficit of US$54.33 billion.

Outlook for the Philippines’ economy

The Philippines’ economy is expected to maintain steady growth, supported by a young workforce, expanding consumer demand, and continued investment in infrastructure. 

The services sector, particularly outsourcing and digital industries, will remain a key driver alongside manufacturing and construction.

Reforms to attract foreign investment and broaden financial inclusion are likely to strengthen competitiveness, while rising adoption of technology will create new opportunities.

Challenges such as infrastructure gaps, climate vulnerability, and reliance on remittances persist, but ongoing policy support and private sector activity position the Philippines for sustained medium-term expansion.

That said, the Philippines’ economy is dynamic and the business environment can change quickly. 

In this context, the best way to stay up to date is to subscribe to Vieter.