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Analysts says growth will be driven by strong domestic demand.
The Philippines.- Analysts at Maybank Securities have forecast that the Philippines’ gross domestic product (GDP) will grow by 6 per cent in 2025, following an expected increase of 5.8 per cent this year. Analysts based the forecast on strong domestic demand, higher private spending related to elections, rate cuts from Bangko Sentral ng Pilipinas and increased investments.
Maybank has a positive outlook for the tourism sector and consumer confidence in the Philippines. A week ago, analyst Ronalyn Joyce Lalimo forecast that tourism could fully recover to 2019 pre-pandemic levels in 2025. He said ongoing infrastructure improvements, including airport upgrades, could help boost tourism from markets like South Korea, the United States, Japan, and Australia.
Maybank highlighted e-visa services for Chinese and Indian visitors. Meanwhile, 43 projects underway under the Build Better More programme include five airport upgrades, including Ninoy Aquino International Airport (NAIA) and the New Manila International Airport. These will enhance capacity, with the new NAIA expected to handle 62 million passengers annually, up from 35 million.
The Department of Tourism (DOT) has reported that the Philippines received over 5.35 million tourist arrivals in the first eleven months of the year, including 432,439 entries from overseas Filipinos. For the full year, the Philippines aims to attract 7.7 million arrivals. However, Maybank noted fewer arrivals from China, which accounted for 21.2 per cent of arrivals in 2019 but only 5.6 per cent in the first eleven months of 2024.
South Korea remains the biggest source market, accounting for 26.8 per cent of arrivals (1.44m). The United States was the second-biggest source market, with 839,635 arrivals (15.6 per cent). There were 352,630 arrivals from Japan.
Analysts says growth will be driven by strong domestic demand. The Philippines.- Analysts at Maybank Securities have forecast that the Philippines’ gross domestic product (GDP) will grow by 6 per…
