Executive summary

The Philippine economy is currently one of the fastest growing in the region. Both remittances and foreign direct investment (FDI) are at record levels, the business process outsourcing sector is booming, the country is improving in international rankings and has been upgraded by credit rating agencies. Beyond macroeconomic and political stability, these economic improvements are in part the cumulative result of reforms since the late 1980s, notably trade liberalisation, deregulation, privatisation and the breaking up of long-standing monopolies in some key sectors during the 1990s under President Ramos. More recently, the Aquino administration has made efforts to increase transparency, improve public-private dialogue and address corruption, together with liberalisation in the financial and maritime transport sectors and the enactment of the new Competition Act which should create new market opportunities for both domestic and foreign investors. These important reforms should help to sustain the improved performance of the Philippine economy.