Adi Joaquim Tolentino

World Bank Lead Economist Gonzalo Varela expects a solid growth rate of 6% in the Philippine economy as European businesses start to expand in the country.


In an economic forum organized by the European Chamber of Commerce of the Philippines (ECCP) on December 5, Varela called out the need for the Philippines to implement laws properly to attract more foreign investments.

“Navigating complex business environment in sectors that in principle were open, but in practice it will be a challenge. The difference between what is written in the law and what actually gets implemented then once the political economy gains,” Varela expressed.

Varela also pointed out that there are many risks for the country like geopolitical risks, regulation of policies, digital transformation, inflation, and climate-related disasters which was also mentioned by the recent release of the 2024 Business Sentiment Survey.

There are significant barriers in terms of investments, business activities, and overall ease of doing business to the PH economy as three-quarters of the respondents responded with this matter.

Varela added that the PH needs to further improve ease of doing business wherein he noted an example of needing over 300 signatories when building an off-shore wind plant.

ING Bank Managing Director and Country Manager Jun Palanca concurs on the further ease but also mentioned the uncertainties along with it.

“The global environment that also poses a lot of risks- a number of conflicts everywhere, a new president in the US, how that impacts the global economy with potential new tariffs,” Palanca stated.

The survey also identified 85 percent eyes on the European Union (EU)-Philippines Free Trade Agreement (FTA) negotiations as significant for them and their business strategies.

The said FTA negotiations are in line with trade in goods and services wherein 24 percent of the respondents agreed upon.

These businesses see the Philippines as an opportunity as 69 percent mentioned its economic recovery and growth opportunities, 54 percent for its adequate laws and regulations for foreign investments, and 50 percent for the customer diversification.

The Department of Finance (DOF) expressed in a statement on December 5 that the Philippines and EU held the fourth meeting of the Sub-Committee on Development Cooperation in Manila on November 25, regarding the agreements in the EU-Philippines Partnership.

The DOF said the green economy is the priority for possible investments in EU grants and guarantees.