A financial analyst from BDO Unibank noted in a business conference earlier this month that the Philippine economy had potential for growth, despite global headwinds, due to its consumer base having a fast-growing population and increased household spending.
Dante Tinga Jr., Senior Vice President at BDO Unibank’s Investor Relations Group gave a briefing to BDO’s Japanese clients during the 2025 Perspectives: Economy and New Approaches in Business Forum, touting the country’s resilience despite global challenges to the economic structure.
Tinga stated that the younger population of the Philippines was the main driver for the economic performance in the country. In a press release, BDO mentioned that half of Filipino citizens were aged 25 years old or younger, and had an annual population growth rate of 1.6%.
Other factors that point to a positive trend in the economic resiliency of the Philippines were its increased household spending and overseas labor deployment- both of which has now surpassed pre-pandemic numbers. The money from these overseas families come back to the country and add to the consumption capacity of the family units.
The Bangko Sentral ng Pilipinas (BSP) noted in 2024 that the inflation rate in the country came back within the target range, due to stabilized prices in imports such as rice, as well as reduced import taxes from new laws.
Tinga noted that the BSP is expected to gradually lower the interest rates, in order to create a favorable environment for more business investments in the country.
Global challenges abound due to larger economic superpowers, such as the United States, turning over with a new set of legislators with different monetary policies than previous administrations.
While the U.S. Federal Reserve’s push for lower interest rates, for example, aligned with the Philippines’ conditions to support economic recovery and boost the private sector, the country must still navigate the risks of fiscal policies under the second Trump administration as well as a stronger dollar.
While the overseas labor workforce of the Philippines would have significant remittance inflows, the stronger dollar (and therefore a weaker peso) could make other imports costlier.
As well, Tinga noted that there is an urgent need to upskill the Filipino workforce to stay competitive in an increasingly digital global economy.
Tinga’s meeting with around 80 Japanese executives would also be a step towards stronger trade between the countries, as BDO’s Japan Desk offers tailored insights and solutions to Japanese businesses navigating the local market. By fostering stronger economic ties between Japan and the Philippines, the Desk underscores its commitment to enabling mutual growth and opportunity.
