Rapid macroeconomic growth has worked to strengthen trade and investment in the Philippines. Build, Build, Build (BBB) – the government’s infrastructure development agenda – is supporting soaring imports, while the fast-growing manufacturing export base remains an economic mainstay. However, export revenue has failed to keep pace with import growth, leading to a record trade deficit in 2017. Foreign direct investment (FDI) hit an alltime high in 2017, bolstered by robust GDP growth,…
Trade & Investment
From The Report: Philippines 2018
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Foreign direct investment in the Philippines hit an all-time high in 2017, bolstered by robust GDP growth, favourable demographics and the manufacturing segment, with inflows from Japan, Europe and China rising steadily in recent years. An ongoing geopolitical shift could have a profound impact on trade and investment in the Philippines, with the government increasingly turning to China as a favoured bilateral partner, and relations with the US, an important historical trade and investment partner, cooling since President Rodrigo Duterte took office in June 2016. The Philippines benefits from a diversified export market, with rising regional trade ties and strong demand from the EU, its second-largest export market, expected to maintain stability even as US investment in the country may ease. This chapter contains a viewpoint from Steven Ciobo, Minister for Trade, Tourism and Investment of Australia; and an interview with Ramon M Lopez, Secretary, Department of Trade and Industry.