If you are looking at a potentially overlooked foreign market to invest in, the Philippines is one you should look at. There was a recent data gathering about it by a business intelligence firm that showed it is actually the third fastest growing economy in the world, and one bank predicts it will outpace the rest of its Southeast Asia neighbors by a lot in the next few decades.
Make no mistake, there are a lot of issues that still slow economic growth and prevent the nation from being as affluent as it could be. But if these change, then the Philippines could become one of the world’s most popular places to do business. What is causing the Philippines to see signs of a positive economy?
A Fairly Stable Government
As with every other nation that does well economically, a government that provides the playing field to do so is where it all starts. The nation has been able to stay free of political turmoil unlike some of its neighbors including Cambodia and Myanmar.
The current president has drawn a few criticisms from the farming community for certain trade policies, but he has managed to maintain great relations with important western nations like the US and the EU nations.
A little more deregulation (though this might not be very much in the local interest) may be in order to promote more domestic investments and build up the nation’s infrastructure. But for the most part, the president and other leaders have refrained from interfering in the economy.
A Diverse Economy and Having More Businesses Operating in the Services Sector
In much of its former days leading into the 21st century, the Philippines was heavily dependent on agriculture like most of the other countries in the region. That sector is still important to the nation, and many critics say more could be done to help farmers make a recovery from their current struggles.
But the nation has wisely diversified into manufacturing and services. The manufacturing has been aided by some foreign companies deciding to relocate plants from China to the Philippines, but their service sector is where the most growth has happened.
From companies that offer customer services to clients deciding to outsource, to tech support firms, the hospitality industry, and a growing gig economy, the Philippines is certainly a place where big tech can thrive.
While tourism may not be nearly as high there as it is in a few affluent parts of Indonesia, it certainly is a viable part of the services sector.
A Fairly High Number Of Money Transfers To The Nation
While the growth of the services and tech industry in the Philippines is by far its strongest economic driver, it is also one of several nations that takes in a lot of foreign remittances.
The growth of financial technology and the fact that more Filipinos today have access to banking in one form or another make it easier to send money from the US to the Philippines.
The reason the Philippines is one of the world’s leading places to send money is because many of its nationals travel abroad either to find work or get advanced education to work in high tech jobs.
While they’re there, they often send money back home to provide for their families, or to help people affected by natural disasters like typhoons and tsunamis which have hit the nation hard in the past.
But influx of money into banks in the Philippines using money transfer services is also helpful to the economy and contributes to the overall gross domestic product of the nation.
Things Still Needed To Spur Growth In The Philippines
While the Philippines has caught up to and is now surpassing neighboring countries, and perhaps could overtake Japan in the coming years , what must it do to improve its internal health? Monetary policy still needs to become better as its currency is fairly weak.
Considering China is one of its key trade partners which has kept its currency valued very low, the ability to raise interest rates by the Secretary of Finance may be inhibited. But they will need to find opportunities to raise interest rates if they really want to become a major competitor in exporting.
The Philippines also still needs to address certain social issues where inequality among the workforce is concerned. Other issues such as water contamination and public health are still present as well.
The bottom line is while the Philippines isn’t the world’s most perfect entrepreneurship opportunity zone, it is certainly one to pay attention to.
If you’re looking to invest in venture capital or perhaps fund a major startup through a micro loan or crowd funding source, there are online methods for bank wire transfers, peer-to-peer money sending, and cryptocurrency funding.
The bottom line is you can send money from the US to the Philippines quickly and see the economic growth firsthand.