A recently released study by Bloomberg confirms that the powerhouse Philippine economy is posed to cement itself as one of the world’s most powerful economies in the near future. Studying data on International Monetary Funds, Bloomberg concluded that the Philippines will continue to be among the Top 20 world economies driving global gross domestic product (GDP) growth by 2024.
The same study for 2019 also included the Philippines among the Top 20 global GDP driving economies.
For the 2024 projections, the Philippines has similar global GDP contribution projections as the U.K. and is ranked higher than PAkistan, Saudi Arabia, Malaysia, and Thailand.
The Philippines has placed well for the last few years thanks in part of the economic policies of President Duterte, sometimes called “Dutertenomics”. Among these are eased regulations of foreign companies who what to invest in the Philippines, legislation like the “Ease of Doing Business” act which speeds up the bureaucracy, and a legacy of interconnection between the congested and highly urbanized capital and the rest of the country. Tax reform has also been a hallmark of the Duterte administration.
Recently, the last 3 packages of President Duterte’s Comprehensive Tax Reform Package (CTRP) were passed in the Lower House of the 18th Congress. These bills are the Corporate Income Tax and Incentives Rationalization Act and the Passive Income and Financial Intermediary Taxation Act, which seek to modernize and reform the country’s corporate income and investment taxation rules, respectively. Also passed was a bill to increase the excise taxes on alcohol, tobacco and e-cigarette products, which would fund the country’s newly-minted Universal Health Care program.
Speaker Alan Peter Cayetano, in his acceptance speech as the leader of the House for the 18th Congress, enjoined his colleagues to be partners for change. The House has since made quick work of the passing of President Duterte’s key measures, including the above reforms and their version of the 2020 National Budget.
“President Rodrigo Roa Duterte or Mayor Rody as he is fondly called wants a safe and comfortable life for all. The House of Representatives, the House of the People are partners with the Duterte administration. We are partners in pursuing a better life for all Filipinos,” Speaker Cayetano said.
President Duterte has emphasized the need for long-term development goals. The Build, Build, Build program, arguable the most ambitious infrastructure program the country has ever seen, will see many of its projects completed after the President steps down in 2022. However, once established, these projects will usher in new possibilities and economic gains for generations to come, particularly as the work to decongest the Metro capital.
For both 2019 and 2024, the top three countries were China, the United States, and India. However, in the later projections, India is expected to eclipse the United States to rank as 2nd. China’s sizeable contributions to the global economy are projected to drop 4.4% by 2024, while all other economies combined outside the Top 20 will grow by nearly 6% in the same time frame. This indicates a greater distribution of wealth and a global scale of economic development.