Philippine economy to reach $1 trillion by 2033 – IHS

MANILA, Philippines — The Philippines is expected to enjoy a continued growth spurt in the next decade with  economic output hitting $1 trillion  by 2033, buoyed largely by expanding private consumption, according to market intelligence firm IHS Markit.

In a report, IHS Markit Asia-Pacific chief economist Rajiv Biswas said the Philippines may experience rapid economic growth in the next decade with gross domestic product (GDP)  hitting $1 trillion or P51.1 trillion by 2033.

This will allow the Philippines to join the ranks of China, Japan, India, South Korea, Australia, Taiwan and Indonesia in the group of  largest economies in  Asia-Pacific.

The nominal GDP of the Philippines as of 2021 is $379 billion or  P19.387 trillion.

“A key growth driver will be the rapid growth in private consumption spending, buoyed by strong growth in urban household incomes,” Biswas said.

He said the strong growth in the size of the Philippine economy is also expected to drive per capita GDP from $3,300 to $6,500.

The rise in per capita GDP will help underpin the growth of the  domestic consumer market, catalyzing foreign and domestic investment into many sectors of the  economy.

Biswas said such growth would result in a significant transformation of the structure of the economy, with substantial expansion in the size of the domestic consumer market.

“This will help to drive foreign direct investment inflows into the Philippines, as multinationals build up their local presence in a wide range of manufacturing and service sector industries,” he said.

Further, Biswas maintained that the outlook for the Philippines in the next 10 years is favorable, with significant progress in economic development expected.

“Rapidly rising per capita GDP and standards of living will help to underpin a broad improvement in human development indicators and should deliver a significant reduction in the share of the population living in extreme poverty over the decade ahead,” Biswas said.