Speaking at an exclusive economic briefing attended by over 80 executives from Japanese companies, Tinga, who leads BDO’s Investor Relations Group, highlighted the Philippines' resilience and its potential as one of Asia’s most promising economies.
He pointed to demographic advantages and sound monetary policies as the foundation of the country’s strength.
Vibrant consumer market
With half of the population aged 25 or younger and a population growth rate of 1.6 percent annually, he said the Philippines benefits from a strong base of resilient domestic consumption. This youthful demographic drives a vibrant consumer market, underpinned by household spending that has already exceeded pre-pandemic levels.
The resurgence of overseas labor deployment and steady remittance inflows from abroad have further strengthened household purchasing power, fueling consumption-led growth.
Monetary easing
Meanwhile, inflation has returned to the Bangko Sentral ng Pilipinas’ (BSP) target range, opening the door for cautious monetary easing. Stabilized rice prices, supported by reduced import tariffs, have bolstered consumer confidence.
Globally, easing monetary policies—particularly the U.S. Federal Reserve’s expected rate cuts—align with favorable local conditions, creating a conducive environment for business investments. Tinga projected that lower rates could reinvigorate private sector spending and accelerate the country’s return to its pre-pandemic growth trajectory.
Challenges
However, Tinga acknowledged challenges such as potential U.S. fiscal policy shifts under the upcoming Trump administration and the impact of a stronger dollar, which could increase import costs and pressure the peso.
He also emphasized the need to upskill the workforce to remain competitive in an increasingly digital global economy.
BDO’s Japan Desk plays a pivotal role in fostering stronger economic ties between Japan and the Philippines, offering tailored insights to Japanese businesses exploring opportunities in the local market.
Through such initiatives, BDO Unibank aims to support the country’s sustained growth while enabling mutual opportunities for international investors. -- Ed: CSN
