Philippines

The Philippines’ aviation sector is soon to undergo one of the most dramatic overhauls in its history, with a new open skies policy about to be implemented, granting foreign carriers access to provincial airports across the country. The government has said this measure will bolster tourism. However some critics believe liberalising the industry will do little to increase visitor numbers unless Philippine airlines are given reciprocal landing rights overseas.

The Philippines ended 2010 with a stronger economy, a new government and hopes for continued stability and expansion. Without doubt, the biggest story of the year was the victory of Benigno Aquino III in the presidential elections held at the end of May. Aquino campaigned heavily on a platform of combating corruption, improving income distribution and careful management of the economy while not reducing spending on social services.

The Philippines government is hoping that higher levels of investment and better weather will come to the aid of the agricultural industry as the sector tries to compete with other segments of the economy.

The Philippines capital markets enjoyed a flurry of activity in the closing months of the year, with a number of firms aiming to hold an initial public offering (IPO) to take advantage of the high levels of liquidity in the marketplace and the increasing momentum in the country’s economy.

With its large pool of English-speaking professionals and well-developed infrastructure, the Philippines is poised to overtake India as the world’s largest supplier of international business processing (BPO).

The Philippines’ construction industry is headed for prosperous times, according to both analysts and the government. The residential and infrastructure segments are set to expand due to high demand, though questions remain as to where the funding for some of these projects will come from.