Australia's envoy to the Philippines has expressed confidence in the growth of the Philippine economy, which she said could drive more investment between Manila and Canberra.

At a reception hosted for journalists on Friday night, Australian Ambassador HK Yu said she is "very optimistic" about the "excellent" Philippine's economic outlook.

Although there are international organizations that have downgraded the country's economic outlook for next year, Yu said it is "fair" as it is also "what's happening to the rest of the global economy."

"To some extent, you know, those downgrades are fair enough. But still, the Philippine economic growth is very strong and the outlook is very strong," she said.

Yu also noted the country's young and growing population, which economists say as "the most important input" to the economy.

"So if you've got a young population... then you've got a lot of reason for optimism," she said.

She also cited President Marcos' pronouncement of making the Philippines investment friendly. She said "those things are really working and you are starting to see significant foreign investment coming through and potential investors showing interest."

"So my outlook for the Philippines is very positive. And I'm optimistic that there is a huge, huge increase that is possible between our bilateral trade and investment," Yu said.