The Philippines is forecast to be the second fastest-growing economy among the Southeast Asia (SEA) six countries, set to grow by over 6% over the next decade.

According to the Southeast Asia Outlook 2024-2034 report published on Thursday, the Angsana Council, US consultancy Bain & Co., and DBS Bank said the Philippines is forecast to expand at an average of 6.1%, whilst Vietnam is predicted to record 6.6% growth.

“Vietnam, Indonesia, and the Philippines are expected to be the faster-growing countries, with Vietnam continuing to stay ahead,” the report states.

The projected economic growth for the Philippines is expected to surpass the forecast expansion of Indonesia (5.7%), Malaysia (4.5%), Thailand (2.8%), and Singapore (2.5%).

The report highlighted several positive growth drivers, including a pro-growth administration, prioritised infrastructure investments, increased interest from foreign direct investment (FDI) in renewable projects, and a growing population and workforce, Philippine News Agency reports.

It also noted that the Philippines, along with countries like Vietnam and Indonesia, has increased per capita spending on education.

“SEA countries, in particular Singapore, Thailand, Malaysia, and the Philippines, saw improvements in their infrastructure quality and have made investments in public infrastructure over the years,” according to the report.

For the Philippines, the report highlighted renewable energy initiatives, such as wind and solar farms, noting that these efforts have contributed to a more sustainable energy mix and improved access to electricity in remote areas.

Whereas in terms of the political landscape, the report said the “Philippines is undergoing positive political shifts, focusing on human rights, foreign policy, and economic reforms.”

However, the report noted that the country's continued lag in education and infrastructure compared to other Southeast Asian nations could potentially hinder growth.

It also added that geopolitics, particularly heightened tensions with China, could potentially disrupt economic recovery.