Determinants of Investments in the Philippines
DID YOU KNOW? Private investments in the Philippines are heavily influenced by three factors:
- Real GDP Growth
- Real Lending Rate
- Public Investments
Real GDP Growth – When real GDP rises, market opportunities expand. This encourages the private sector to set up or expand production capacities to take advantage of rising demand.
Lending Rate – The rise in interest rates tends to discourage private investments, especially in sectors with lower rates of return.
Public Investments – Public investments are sensitive to revenue collections, which are highly correlated to real GDP. When the government pursues rapid investment-led growth, it has to boost public sector resource mobilization through tax policy and tax administration reforms.
Learn more about the determinants of investments through the infographics above
Read the case study here:
https://www.dof.gov.ph/wp-content/uploads/2022/10/INVESTMENT-DEVELOPMENTS-AND-ECONOMIC-GROWTH-2022.pdf
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