MANILA, Philippines — The European Chamber of Commerce of the Philippines (ECCP) on Wednesday expressed optimism for the country’s business environment this year, signaling continued confidence from the nation’s fourth largest trading partner by regional bloc.

ECCP president Paulo Duarte expressed confidence, citing the country’s solid macroeconomic fundamentals.

“The Philippine economy has made significant strides, overcoming recent challenges and positioning itself for sustained growth. This presents exciting opportunities for deeper collaboration and partnership with Europe,” Duarte said during the launch of the 2025 edition of the chamber’s “Doing Business in the Philippines” guidebook.

“We are encouraged by the moderation of inflation, which averaged 3.2 percent in 2024, well within the government’s target range of 2 percent to 4 percent,” he said further, noting as well a strong gross domestic products (GDP) growth forecast of 6 percent for 2024.

The ECCP official also mentioned the impact of a free trade agreement to the local business environment, highlighting that the next round of discussions is set to be held next month.

Aside from these factors, Duarte mentioned several key reforms that were recently implemented by the government that gives them hope.

These include the passage of the Corporate Recovery and Tax Incentives for Enterprises Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, the government’s green lane program for strategic investments, and the Ease of Paying Taxes Act, among others.

Despite the rosy outlook, the ECCP official said that more measures need to be implemented to improve the country’s investment climate.

Citing the 2024 World Competitiveness Report, Duarte said the Philippines still ranks 52nd out of 67 countries.

“Despite notable improvements in government efficiency, the country experienced setbacks in crucial areas such as infrastructure and business efficiency. As a chamber, we remain committed to championing reforms that will propel the Philippines towards the top of global competitiveness,” he said.

With this, Duarte said they can help EU firms operating in the Philippines to navigate the business landscape further with the “20225 “Doing Business in the Philippines” guidebook.

The ECCP’s 165-page report, done in cooperation Divina Law and the Boad of Investments, covers topics ranging from investments to taxation, down to labor and employment to competition laws.

Total trade in goods between the EU and the Philippines amounted to €16.1 billion (around P981 billion) with the former being the country’s fourth-largest trading partner at 8.1 percent.