The Philippines is positioned for growth in 2024 after successfully navigating the uncertainties of 2023, according to Reyes Tacandong & Co.

2023 was a year fraught with challenges such as rising inflation, war in Ukraine, and the threat of global recession–all on the back of the world’s emergence from the COVID-19 pandemic. And yet, despite these difficult times, the Philippines managed to post a strong gross domestic product (GDP), manage inflation, and position itself for future growth. Because of this, Reyes Tacandong and Co, an accounting and professional services firm, reports a positive 2024 outlook, calling it a “year of resilience,” one that will potentially accelerate the economy’s forward growth in 2025.

In a report titled “Charting Resilience: Philippine Economy in Review (2023) and Prospects for 2024,” Reyes Tacandong & Co cited how, in 2023, the Philippines “exhibited notable economic fortitude, marked by robust GDP growth, prudent fiscal measures, and dynamic policy responses.”

Reyes Tacandong & Co’s 2024 outlook, while positive, remains similar to the country’s performance in 2023. Projected key indicators like GDP show a slight increase from 5.3% in 2023 to 5.6% in 2024, while other indicators, such as USD exchange rate remain static at PHP55.50 to the dollar. The Philippine Stock Exchange index forecast also remains flat at 7,100.

The report emphasizes that 2023 and 2024 are years where the Philippine economy positioned itself for further growth and adaptation. “Strategic policies, a commitment to innovation, and collaborative efforts” the firm says, “will be pivotal in steering the nation toward a dynamic and sustainable economic future.”

Its 2025 forecast is more bullish, with a projected 6.3% GDP growth, a stronger peso at PHP55 to the dollar, and a PSEi of 8,500.

2023 in Review

The Reyes Tacandong & Co report names four significant achievements for the Philippine economy  in 2023.

1. GDP Growth

Led by strong performance in manufacturing, business process outsourcing and information technology, the Philippines managed sustained GDP growth.

2. Inflation Management

Thanks to the central bank’s implementation of measures to curb price pressures, the nation was able to successfully manage inflation.

3. Infrastructure Development

Infrastructure projects have aided the economy to enhance connectivity and a sustainable future for the economy.

4. Digital Transformation

The Philippines continues to embrace digital innovation. This has led to dramatic growth among tech startups and e-commerce.

2024 Outlook

While many economic uncertainties remain, the Philippine economy is expected to leverage lessons learned from the previous year. With the government’s economic reforms and targeted interventions, the nation should be able to insulate itself from external shocks.

The report focuses on three key areas for 2024. First, diversification will allow the economy to reduce its dependence on specific sectors and enhance economic stability. Second, sustainable development will help to ensure long-term resilience. Third, the economy is expected to receive a digital economy boost.