HSBC Philippines remains bullish on the country’s economic trajectory, projecting the Philippines to become one of Asia’s fastest-growing economies by 2025. The bank emphasized strong domestic consumption, a youthful workforce, and a rising middle class as key factors behind the upbeat forecast.
Pramoth Rajendran, Head of International Wealth and Premier at HSBC Philippines, made the statement during a media briefing held at the Shangri-La at the Fort in Bonifacio Global City on Tuesday.
Rajendran acknowledged that the country’s first-quarter gross domestic product (GDP) grew by 5.4%, slightly below expectations. However, he affirmed that HSBC’s house view maintains a full-year growth projection of 5.6%. Compared to most Asian markets, he said this makes the Philippines one of the region’s top economic performers.
Consumption and demographics fuel momentum
According to Rajendran, the Philippines’ consumption-driven economy sets it apart from its neighbors. He said that around 75% of the GDP stems from domestic consumption, a figure that highlights the resilience of Filipino spending behavior even amid global economic uncertainty.
He also pointed out that the nation’s demographic profile strengthens its long-term growth prospects. With a median age of 25 and a growing working-age population, the Philippines is expected to enjoy what economists call a “demographic dividend.”
This young labor force, combined with increasing economic activity, offers a rare advantage that could support sustainable expansion in the coming years.
Middle-class surge expected by 2030
HSBC also projected significant growth in the country’s middle and affluent classes. Rajendran said the number of Filipinos holding assets worth over USD 250,000 could double by 2030.
He explained that about 1.5% of the population already controls a substantial portion of the nation’s wealth. Many in this segment are insulated from short-term financial shocks and will likely continue to drive demand for investment, financial services, and premium goods.
Because of this, HSBC foresees more opportunities in the international wealth and banking sectors in the Philippines, with the country becoming a key market in the region.
HSBC bets on long-term opportunity
Despite existing market volatility, HSBC remains confident in its long-term outlook for the country. Rajendran said that even with global headwinds, the fundamentals of the Philippine economy remain intact. He added that strong internal demand and a maturing financial sector create a positive environment for businesses and investors.
He emphasized that HSBC is positioning itself to grow with the country, as core indicators like consumption and demographics continue to align with their regional strategy.
The optimism reflects broader confidence in the resilience of the Philippine economy, especially as regional peers face tighter monetary conditions and slower consumer demand. With robust fundamentals, the country appears poised to remain a standout performer in Southeast Asia’s evolving economic landscape.
Jaja has a degree in journalism and took classes in international law and business communication. Her career spans roles at prominent international media outlets, including International Business Times, Celebeat and Delightful Philippines. As a news editor, Jaja covered a wide range of beats, including legal, business, economy, cryptocurrency, personal finance, gaming, technology, and entertainment.