Experts have projected that the Philippines will remain resilient despite global headwinds like geopolitical tensions, tightening in global financial conditions, and overall weaker global economic growth. They also assessed that in 2024, the country is projected to grow between 5.5 percent and 6.2 percent. The country’s domestic demand-driven economy makes it less sensitive to global headwinds. The domestic factors that buffer the weaker global economic outlook include: a) sustained private consumption, b) the rise in government infrastructure spending, c) the steady flow of remittances from overseas Filipinos, d) an improving job market with an increasing number of wage and salary earners, e) fast-growing IT-BPO sector exports, and f) the continued recovery of the tourism sector. While the outlook for the Philippine economy is favorable, there can be risks to its near-term growth outlook due to persistently high inflation influenced by weak global economic performance.

On the non-financial front, climate change, evolving stringent ESG regulations, the threat of biodiversity loss, cybersecurity risks, and the preservation of human rights during renewable energy expansion efforts are reported to dominate the concerns for 2024. However, for the past five years and in the years to come, FPH has been and will continue to be steadfast in preparing our organization for ESG-related risks through robust governance, the full integration of ESG in corporate functions for decision-making, capacity building, and the establishment of environmental and social safeguards. This ESG integration process is expounded upon further in the Value Creation section on page 99. 
 
As a result of the confluence of the Philippines’ modestly resilient situation and the continuing buildup of the Company’s readiness to attend to ESG risks, we project a positive outlook for FPH in both the short-term and long-term. The detailed implications of these factors to the FPH businesses are discussed in the table below.