This forecast for what could be the fastest growth pace for the country since 2018 reflects rising optimism about the local economy despite challenges posed by global uncertainties.
Unicapital’s report anticipates inflation falling below the Bangko Sentral ng Pilipinas’ (BSP) target ceiling of 4 percent, with a projected rate of 3.1 percent.
Lower global oil prices and the recently signed Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating Economy (CREATE MORE) law are expected to drive this improvement.
“This is a pivotal moment for the Philippines. With the CREATE MORE law, measures are in place to enhance corporate profitability and attract investments,” Unicapital Group CEO Jaime Martirez said in a statement.
The new law reduces corporate income tax to 20 percent from 25 percent and provides VAT zero-rating for export-oriented companies, creating opportunities for growth.
The government’s commitment to fostering a competitive tax regime is also anticipated to spur domestic and foreign investment.
President Marcos referred to the law as “a resounding testament of our commitment to make the Philippines the destination of choice for investments.”
Unicapital sees these reforms benefiting Filipino households through increased employment and disposable income. Lower inflation and an improved labor market are expected to boost consumer spending, a key economic driver.
Risks and opportunities
External factors, including potential US protectionist policies under its new administration, may pressure the Philippine peso and impact oil prices.
However, Unicapital projects a 14-percent year-on-year gain in the Philippine Stock Exchange Index, driven by corporate earnings growth and policy rate reductions.
The real estate sector faces mixed prospects. Office vacancies could rise to 20.5percent due to the phaseout of Philippine offshore gaming operators, but residential demand is forecast to grow by 9 percent, supported by easing mortgage rates.
Unicapital remains optimistic about 2025 but cautions against risks such as prolonged geopolitical tensions and interest rate fluctuations.
Founded in 1976, Unicapital offers investment banking, lending, and securities brokerage services. It focuses on empowering mid-cap and high-growth companies in emerging industries.
