Philippines

While two major natural disasters took their toll on the Philippines’ tourism industry during the latter part of 2013, strong overall demand from both the domestic and international markets helped the industry edge close to double-digit growth for the full year.

In response to rising domestic demand and a fall in production due to last year’s extreme weather conditions, the Philippines has scaled back sugar exports this year, but longer-term prospects for overseas sales as well as expansion in the local market could drive growth in the sector.

A year of strong economic growth and high foreign direct investment (FDI) in the Philippines has set the scene for a wave of new real estate activity during 2014.

The business process outsourcing (BPO) industry is playing an increasingly important role in the Philippines economy, both as a source of foreign currency earnings and as a destination for overseas investment. However, the sector could face greater regional competition as its neighbours look to cash in on the growing demand for outsourced services.

Although rocked by the worst typhoon in its history late last year, the Philippines was one of Asia’s 2013 success stories, maintaining strong macroeconomic fundamentals and steady GDP growth.