2016 is election year in the Philippines and perhaps you would be asking whether it would be a good time for your business or would it be a good time to invest in business. Let us present some data and we will leave the decision to you.
According to a report election years in the Philippines bring about a boost with average annual growth rate of 7 percent compared to only 4.5 percent during non-election years. We should also expect a lot of spending this year specially from politicians and political parties on political ads, wages, food, venue and others.
It will also be the last stretch of President Benigno Aquino’s presidency and since the public-private partnerships program is not covered by the election ban, these projects will surely be on the move.
This years elections is perhaps the most competitive since we really don’t know who will be our next president. With this it also brings a lot of uncertainty since policies will differ depending on who will win. Though we are not seeing huge changes and delineations from the existing policies, expect some changes if a new political party wins the election.
GDP in Philippines is expected to be 295.35 USD Billion by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Philippines GDP is projected to trend around 378.60 USD Billion in 2020.
The ease of doing business in the Philippines has been improving mainly due to the much needed push brought about by both APEC and ASEAN. From a ranking of 136 among 183 countries the Philippines now ranks 109 among 189 countries in the world according to the World Bank. You can also maximize the opportunity by capitalizing on incentives given to businesses.
Registration of business is also simplified. For government required payments like tax, SSS, PAG-IBIG and other contributions, you can now pay them online.
Overall, we are seeing a good economic and business landscape in the Philippines for 2016. Despite regional and international financial worries, the Philippines remains one of those who has a pretty stable economy.
Do you want to invest in the Philippines or start your own business? You should check out our business tips on starting a business in the Philippines.