The World Bank has projected a steady yet moderate growth in the Philippines’ exports through 2026, with services exports, particularly in tourism and IT-BPO, leading the charge.
In its latest Philippines Economic Update (PEU), the World Bank said that the recovery of global tourism and consistent growth in information technology and business process outsourcing (IT-BPO) services will be key drivers for the country’s export performance in the years ahead.
“While global demand for goods is expected to improve, the recovery in merchandise exports will face headwinds, mainly from trade distortions and uncertainties that could affect global trade dynamics,” the report noted. As a result, global trade growth is anticipated to remain subdued, with both global and trade activity staying below pre-pandemic levels until 2026.
Industry growth, which is projected to contribute over a quarter of the country’s economic expansion between 2024 and 2026, is expected to be driven by manufacturing and construction. The World Bank expects the global recovery in goods trade to benefit the electronics sector, particularly semiconductor exports. The semiconductor industry is forecasted to rebound in 2025 as it resolves inventory issues and ramps up capacity with new products.
The government’s investment in infrastructure—particularly in information and communication technology (ICT) and transportation—will also support growth in construction and logistics sectors, the report added.
However, the World Bank remained cautious about the agriculture sector, predicting limited growth due to ongoing challenges, including low productivity and vulnerability to climate-related disruptions.
As the Philippines navigates a post-pandemic economic recovery, services exports are expected to play a central role in its export-driven growth, with tourism and digital services offering promising opportunities for long-term development.
