Philippines Could Become Asia’s Fastest-Growing Economy – ADB

May 23, 2019

The Philippines could become Asia’s fastest-growing economy due to the country’s young and English-proficient workforce in business process outsourcing (BPO) companies, tax reform programs and unprecedented infrastructure projects, according to the Asian Development Bank (ADB).

Global Credit Rating

S&P Global recently increased the Philippines’ credit rating, indicating strong economic growth that has been steady at over 6 percent. Presidential Spokesman Salvador Panelo reported that Malacañang was pleased with the upgrade and the President’s economic advisors, along with Congress, have done a great job spearheading bold economic reforms, getting the economic house in order and boosting the economy.

The country’s gross domestic product (GDP) growth is already among the fastest in Asia, along with China and Vietnam.

Workforce in Business Process Outsourcing Companies

ADB Chief Economist Yasuyuki Sawada said that now the country’s debt is under control and overall fundamentals are strong, “it’s quite possible” for the Philippines to be number one in Asia for economic growth. Sawada also mentioned the young talent pool with an average age of 28 and English proficiency continuing to serve business process outsourcing (BPO) companies.

However, risks like the trade war between China and the United States could check growth in Asia. A slowdown in China as a result of the trade dispute could negatively impact the entire region indirectly, but it could also give other Asian countries like the Philippines an opportunity to present themselves as alternative destinations, Sawada added.

He believes the overall impact of the trade war on Asian economies is moderate and slightly positive. The Asia-Pacific region currently contributes 60 percent to the world’s economic expansion.