General Information

The Philippines have recorded these last years some of the highest growth rates in Asia (around 6%), with the obvious exception of 2020 which saw negative growth due to the pandemic. Internal demand remains the main driver of growth thanks, primarily, to private consumption which represents over 2/3 of the GNP. Over 2022 as a whole, Philippine GDP growth will reach 7.6%, its highest level for 45 years.

The country has greatly advanced in terms of the ease of conducting business (95rd place in 2020 as opposed to 148th in 2011), and the improvement of infrastructure is one of the government’s priority objectives. ;
The Philippine economy is dominated by the service sector. The agricultural sector also remains important, but generally relates to subsistence farming. Revenues here are linked to the production and export of tropical fruit (coconuts, bananas, pineapples, mangos). Industry remains concentrated on sectors of low added-value: agrifood transformation, the construction of electronic components, textiles, and clothing.

Means of Payment & Banking Specificities

Payment risks are high, with documentary credits remaining the most secure and most common payment method. It is recommended to confirm the reputation of issuer banks upon the reception of a documentary credit. The billing currency used is the US dollar in 80% of cases, although other currencies may be used (Yen, Euro, Swiss Franc, HKD, AUD, CNY).

It is possible to obtain information on Filipino counterparties via the “Federation of Filipino-Chinese Chambers of Commerce and Industry” (FFCCCII) in Hong Kong. There are also companies that can provide information for a fee (for example, Dun & Bradstreet, Credit Information Corporation).