Forward-looking policy reforms and proactive initiatives in trade and investment promotion are the main drivers of growth and development for the country, according to the European Chamber of Commerce of the Philippines (ECCP).

“Despite external uncertainties, the economy remains resilient. Driven by a dynamic, growing population and exceptional English proficiency, the Philippines continues to be one of the fastest-growing economies in the region,” ECCP president Paulo Duarte said.

“We are encouraged by the moderation of inflation, which averaged 3.2 percent in 2024 — well within the government’s target range of three percent to four percent,” Duarte added.

He also cited a strong gross domestic product (GDP) growth forecast of six percent for 2024 and robust remittances from an estimated 10 million overseas Filipino workers to provide significant support to the economy.

EU FTA negotiations next month

To maintain this trajectory, Duarte continued, the Philippines must not lose steam in implementing policy and regulatory reforms, including the second round of negotiations for the European Union-Philippines Free Trade Agreement set to take place in February, which opens opportunities for stronger trade and investment ties between the Philippines and Europe.

Duarte also cited the recently enacted Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, which is designed to optimize the Philippines’ tax regime, streamline business processes, reduce costs, and enhance the country’s global competitiveness.

Complementing this is the signing of Executive Order 18, establishing Green Lanes for Strategic Investments, which further accelerates the approval processes for licenses and permits, demonstrating the government’s commitment to fostering a business-friendly environment, he added.

“While we welcome these initiatives, more needs to be done,” Duarte stressed.

Citing the 2024 World Competitiveness Report, the Philippines ranked 52nd out of 57 countries, maintaining its position from the previous year, Duarte said despite notable improvements in government efficiency, the country experienced setbacks in crucial areas such as infrastructure and business efficiency.

Duarte also highlighted findings of the Chamber’s 2024 Business Sentiment Survey where 53 percent of respondents saw the ease of doing business measures in the Philippines as improving, yet 75 percent of respondents said there are still significant amounts of barriers to investment, business activities, or overall ease of doing business in the country.

Duarte assured that the ECCP remains committed to championing reforms that create a more conducive investment climate and to bolstering collaborations with government and private sector partners in both Europe and the Philippines to maximize the country’s potential and attract a larger share of global Foreign Direct Investment.

“Central to the Chamber’s agenda are initiatives to drive increased trade and investments, advocate for policies that promote economic liberalization, and enhance the ease of doing business in the Philippines,” Duarte continued.

“As we champion the country as a preferred investment destination, we also emphasize the integration of sustainability practices and digitalization, aligning with the Green Economy Program and the European Green Deal, among others,” he added.

To showcase invaluable resources for businesses navigating the local landscape, the ECCP, DivinaLaw, and the Philippine Board of Investments, unveiled the latest edition of its Doing Business in the Philippines Publication alongside key government officials and heads of European diplomatic missions.