Video: Highlights from The Report: The Philippines 2021
Philippines | Economy
Oxford Business Group (OBG) has now launched The Report: The Philippines 2021. This 11th edition of our country analysis has a special focus on the implications of the Covid-19 pandemic for business and investment, and shines a spotlight on the prospects for recovery.
The pandemic arrived after a period of strong economic growth in the country, which averaged 6.4% per year over the past decade – making the Philippines one of the fastest-growing economies in the world. The country has appealed to investors due to this economic expansion – combined with a growing, young population; reforms to improve the ease of doing business; and the administration’s Build, Build, Build infrastructure development programme.
Some challenges remain, however, with inequality one notable barrier to growth – particularly with regards to the distribution of wealth and services. The Covid-19 pandemic has also disrupted the national growth trajectory, with President Rodrigo Duterte initiating one of the world’s strictest and longest lockdowns in mid-March 2020. The latest publication from OBG outlines the four-pillar socio-economic strategy introduced in an effort to mitigate the impact of the pandemic and aid the national recovery effort.
The Report: The Philippines 2021 shines a spotlight on the Corporate Recovery and Tax Incentives for Enterprises (or CREATE) bill, and its potential to strengthen the competitiveness of micro-, small and medium-sized enterprises, and catalyse more private sector investment in 2021 and beyond. The publication also analyses the prospects for further investment-related reforms before the end of President Duterte’s term in 2022, particularly in the areas of retail and public utilities.
In a special Digital Economy chapter, OBG analyses how businesses and key industries reacted to the sudden disruption of the pandemic, and highlights new growth opportunities in e-commerce and business process outsourcing. Looking ahead, the publication details increased competition in the telecoms sector, with the imminent entry of a third operator set to disrupt the market in early 2021. The digitalisation of financial services is another focus of the report, which outlines how digital banking and cashless payments could boost operational efficiency, as well as financial inclusion – an important target for the government to achieve inclusive economic growth.
The report examines the Philippines’ industrial sector and describes the steps taken to enable manufacturing continuity during the pandemic. It also explores the Philippines’ progress in transitioning towards Industry 4.0 and the growth of value-added production in areas such as fast-moving consumer goods.
OBG analysis evaluates the administration’s flagship Build, Build, Build initiative, which is expected to regain momentum following the relaxation of pandemic-related restrictions. Development looks set to be buoyed by the government’s commitment to priority projects to help jump-start the country’s economic recovery – as well as by the demand for transport connectivity and public utilities in the so-called new normal.
Read The Report: The Philippines 2021 for in-depth analysis of these crucial topics from our on-the-ground and remote experts, as well as incisive insights from key private and public sector players.