Philippines

Strong domestic demand for a broad range of goods and services is galvanising economic growth in the Philippines, helping the country to buck a regional slowdown. Consumer confidence remains high, buoyed by news that the government plans to roll out several big-ticket infrastructure projects, in part aimed at creating jobs. However, the Philippines remains vulnerable to many of the external factors.

Hefty government investment in agricultural infrastructure next year is set to bolster a national drive under way in the Philippines aimed at increasing productivity and improving food security.

Foreign firms have objected to trade union proposals to raise the minimum wage, fearing this will cost the Philippines its competitive edge in what is an increasingly tough global investment climate. However, unions say the changes are crucial as workers need to shoulder increasing utility costs.

Strong economic growth is boosting consumer purchasing power in the Philippines, driving retail sales and creating opportunities for investment by both local and international chains.

While the Philippines is one of the fastest-growing economies in South-east Asia, the country lags when it comes to foreign investment, particularly when compared to its regional neighbours.

Demand for housing and office space in the Philippines is expected to remain high on the back of impressive economic growth. Despite an increase in new space, property developers expect vacancies in premium residential and office space across business districts to remain scarce.