The Republic of the Philippines

The Philippines is an island nation situated in the western Pacific Ocean in Southeast Asia, bordered by the Philippine Sea to the east and the South China Sea to the west. This archipelago consists of approximately 7,107 islands and is located near Vietnam, Malaysia, and Indonesia.

Income group

Lower middle income

Region

Southeast Asia

Capital

Manila

Currency

Philippine Peso (PHP)

Administrative divisions

There are 82 provinces in the Philippines

Mainland area

300,000 km²

Internet penetration

73.6% (2024)

Mobile phone penetration

99.3% (2024)

Demographic profile

Population hit

0 M

48.5%

Urban population (2023)

51.5%​

Rural population​ (2023)

50.8%

Male (2023)

49.2%

Female (2023)

10%

Baby boomer (2020)

16%

Gen X (2020)

24%

Gen Y (2020)

31%

Gen Z (2020)

Employment profile

The labour force reached

0 M

66.6%

Participation rate (12/2023)

96.9%

Employment rate (12/2023)

65.1%

Labour force at MSMEs (2022)

24.1%

High-skilled labour ratio (2017)

US$ 331

Monthly average income (2022)

17.5%

Attrition rate (2023)

23.7%

Employment in Agriculture (2022)

18.9%

Employment in Industry (2022)

57.4%

Employment in Services (2022)

Economic profile​

Philippines ranks as the

0 th

-largest economy in the world

US$ 436.6B

GDP (2023)

US$ 3,870

GDP per capita (2023)

US$ 24B

Digital economy GMV (2023)

US$ 21.2B

ICT market size (2022)

99.6%

Percentage of MSMEs (2022)

US$ 956M

Total capital invested in startups (2023)

The fourth-largest economy in Southeast Asia

FDI inflows

Philippines's foreign direct investment attracted nearly US$ 8.9 billion by 2023

Export turnovers

Philippines's export turnovers reached US$ 6.3 billion by May 2024

Newly-established businesses

In 2023, there were 984,332 newly-established businesses in Philippines

US$ 8.9B

FDI Inflow (2023)

Manufacturing

23.4%

Real Estate

11.2%

Financial and Insurance

9.5%

Others

9.4%

US$ 6.3B

Export turnovers​ (5/2024)

Electronic products

56.2%

Other mineral products

4.8%

Ignition wiring set & other wiring sets used in vehicles, aircrafts and ships

3.1%

Gold

1.5%

984,332

Number of newly-established businesses (2023)

Retail selling in sari-sari stores

17.6%

Other restaurants and mobile food services activities

7.9%

Real estate buying, selling, renting, leasing, and operating of self-owned/leased apartment buildings, non-residential and dwellings

4.2%

Central Luzon

13.05%

Bulacan

4.0%

Pampanga

3.1%

Nueva Ecija

2.1%

Tarlac

1.4%

Zambales

1.17%

Doing business in Philippines

Opportunities & challenges

Opportunities

• Robust tourism sector

• Thriving BPO sector

• Qualified and fluent in English

• Diverse geographic and sectoral origins of expatriate workers’ remittances

• Large and young population

Challenges

• Inadequate infrastructure levels

• Weak diversification of manufacturing production

• Exposed to natural disasters and terrorism

• Governance shortcomings

• High levels of income inequality

• Limited added value from exports

Looking to expand in Philippines?
Let us help you!


Thank you for your interest in H&Co.

So we can help serve you better, please complete the form.

Please note, due to the volume of inquiries, we cannot respond to everyone right away. 

Scroll to Top