Economic Report 2021

Posted on May 31, 2022

Executive Summary

The Philippines is back on track posting a full-year growth of 5.6% in 2021 attributed to gradual resumptions of various economic activities, which have been totally and/or partially in lockdowns in the previous years.

There is general optimism for economic recovery. In fact, conglomerates have seen rebounds in their net earnings, and increase in MSME registrations.

Congress approves long-term critical economic reforms such as amendments to the foreign investment act, corporate tax and fiscal incentives rationalization, public services act, and retail trade act, among others. These structural reforms open wider opportunities for more foreign investors especially on key sectors such as renewable energies, retail trade, and those identified in the Investment Priorities Plan

Bilateral trade between the Philippines and Switzerland reaches CHF 540.2 million in 2021 from CHF 501.6 million in 2020. Top Swiss import products include machines, appliances, and electronics; textiles, clothing, and shoes; and precision instruments.

Top Swiss exports are products from the chemical and pharmaceutical industry; machines, appliances, and electronics; and precisions instruments. Meanwhile, Swiss direct capital stock to the Philippines is at CHF 2.3 million in 2020 according to the latest available data from SNB.