Assessment and recommendations

The Philippine economy has been transformed over the past decade into one of the fastest growing in the region, currently outperforming other major ASEAN economies. Growth has been spurred by record remittances from overseas Filipinos which has helped to fuel domestic consumption, as well as by the booming business process outsourcing (BPO) sector. Macroeconomic stability has been accompanied by sound fiscal management and political stability with a stable democracy and regular elections. The Philippine economy received a further vote of confidence in 2013 when credit rating agencies upgraded it to a BBB investment grade status. It has also improved its performance in several international rankings. Inflows of foreign direct investment (FDI) are also at record levels, albeit still low by regional standards.