Philippines 2025 GDP to grow 6pct, strong tourism: Maybank

Dec 17, 2024 Newsdesk Latest News, Philippines, Top of the deck  

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Maybank Securities Inc forecasts gross domestic product (GDP) growth in the Philippines “to strengthen to 6.0 percent” in 2025, after an expected 5.8-percent increase this year.

GDP growth next year will be “driven by strong domestic demand, higher private consumption from election-related spending and the impact of Bangko Sentral ng Pilipinas rate cuts, along with increased investments,” stated the institution in a Monday memo.

The Philippines is one of the few jurisdictions in Asia to have an extensive casino industry with unrestricted access for locals, as well as foreigners.

Maybank said it had a “positive outlook” on the tourism sector and on consumer sentiment in the Philippine market.

In a prior note, the institution said that was because the Philippine tourism sector was cementing its position “as one of the most vital contributors to the country’s economy”.

“The tourism outlook for 2025 is brighter, bolstered by strong support from President Marcos’ administration,” said Maybank in a memo earlier this month.

Philippine tourism arrival volume should reach full recovery in 2025 relative to 2019’s pre-pandemic levels, according to the brokerage. This would be supported by a “strong influx” of travellers from key tourism feeder markets.

Maybank said ongoing infrastructure investment, including airport upgrades, could boost overall tourism arrivals to the country in the longer term.

“These efforts are expected to boost tourist arrivals, increase tourism employment, and elevate the sector’s contribution to GDP, surpassing pre-pandemic levels,” it added.

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