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The Philippines: Scale, Stability and Demographic Tailwinds in ASEAN

The Philippines is ASEAN’s most domestically anchored growth platform, combining demographic depth with diversified external exposure, offering resilience versus more export-dependent peers.

The Philippines stands out among ASEAN’s large economies for growth anchored in domestic demand rather than export concentration. With GDP nearing USD 500 billion and real growth above 5% in 2025, it combines scale with demographic momentum, supported by a population of 114 million, 67% of working age.

While exports are stable at USD 73 billion, exposure is globally diversified, with only 15% directed to ASEAN partners, limiting regional concentration risk. FDI inflows are accelerating and manufacturing contributes 19% of GDP, adding industrial depth without overreliance on external demand cycles.

Supported by services exports and remittance inflows, the Philippines offers a resilient consumption-led growth model within ASEAN’s broader production ecosystem. For global firms, it represents a scalable domestic market and complementary services and manufacturing base in the region.

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