The Philippines is set to be one of the leading emerging markets driving global economic growth over the next decade, according to a report released by S&P Global on Thursday. With a projected average growth rate of 4.8% by 2035, the country ranks third among the fastest-growing economies in the Asia-Pacific region, behind Vietnam and India.
S&P Global defines emerging markets as countries that are transitioning toward middle-income levels, with strong access to global capital and increasing economic relevance. The Philippines is seen as a key player in this group due to its economic size, population, and expanding share in global trade.
“Emerging markets will play a crucial role in shaping the global economy over the next decade, averaging 4.06% GDP growth through 2035, compared with 1.59% for advanced economies,” the report stated.
The Philippines showed solid growth in the second quarter of 2024, expanding by 6.3%, which brought its average first-semester GDP growth to 6%, in line with the government’s target of 6-7% for the year.
S&P Global also highlighted the country’s potential to benefit from global trends, such as the shift to renewable energy and changes in supply chains. The report said that nations like the Philippines are well-positioned to supply the metals and minerals required for energy transitions.
On the fiscal side, the Philippines is expected to reduce its debt-to-GDP ratio by 2035, a feat only a few larger emerging markets are predicted to achieve. Despite the current ratio being slightly above the 60% benchmark, S&P projects steady improvement in the coming years.
