THE PHILIPPINES IS NOW RATED AS THE NEXT TOP 3 ECONOMIES TO INVEST IN & IS FORECASTED TO BE THE WORLD’s 16th LARGEST ECONOMY
“…due to Philippine President Benigno Aquino III’s efforts to tackle corruption & improve Philippine infrastructure. His administration made the bidding process for public works more transparent, winners are announced via Twitter. Economists praise President Aquino’s US$16 Billion program to improve railroads, airports, highways, and programs to provide vaccines, build more elementary & high schools.”
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Date
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Good News (from “As I Wreck This Chair”, by William M. Esposo,
The Philippine Star, Sunday, May 13, 2012)
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2/25/12
British Embassy Report |
- HSBC (Hongkong & Shanghai Banking Corporation) research calls the Philippines a “Star Performer”, the HSBC Report – “The World in 2050”, predicts the Philippines to be the world’s 16th largest economy by the middle of the century, up by 27 places from today.
- Due to strong fundamentals (education levels, strong democracy, low wage costs) and powerful demographics (young & fast growing population)
- The Philippines is forecasted to have an average annual growth rate of 7% over the next 40 years.
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3/19/12
World Bank Report |
- The Philippines is benefiting from a popular government seen by many as committed to improving governance & reducing poverty.
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4/25/12
Reuters TV Report |
- Investment Guru Ruchir Sharma of Morgan Stanley declared that investments in BRICs (Brazil, Russia, India, China) is passé and wise money should focus on TIP (Turkey, Indonesia & the Philippines)
- Forecasts echoed by Goldman Sachs, HSBC Research, World Bank
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4/28/12
Financial Times Report
Asia Editor
David Pilling |
- The external position has improved dramatically, the Philippines after many years of indebtedness, is a net creditor
- Since 2004 overseas remittances from 8 million Filipinos working abroad grew from US$7 billion to US$20 Billion and is now 10% of GDP (gross domestic product)
- With the country’s fiscal house in order, deficit is reduced from a worrying 5-6% 10 years ago to a manageable 2 % today
- The Aquino government is restoring rice self sufficiency after the Philippines was forced to import 1/5th of its rice needs in 2008
- It has established PPPs (Private Public Partnerships) to build roads, railways, power stations
- Progress slow, but the legal regime is solid
- Many economists are predicting a private investment boom, predicated on favorable demographics – half of the Filipinos are under 25 years old, and the Philippines has the healthiest banking system in Southeast Asia
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5/3/12
BusinessWeek/Bloomberg |
- US$6 Billion in Foreign Direct Investment – 15 year high for the Philippines
- Exports in February 2012 jumped 14.6 % to US$4.43 billion, government announced on April 12, 2012, due to increased demand for made in the Philippines electronics – Toshiba, Texas Instruments. etc.
- Foreign Reserves US$37.5 billion in 2008, now at US$76 billion (103% increase)
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5/3/12
Tamara Henderson, Bloomberg Brief Economist |
- President Benigno Aquino’s government has progressed in getting the Philippines’ fiscal problems under control, with the budget deficit as a % of gross domestic product from 3.7% in 2009 to 1% in 2011 = same level of budget deficit as Germany and far better than India’s 7.3%
- Investors have taken note of the progress. Ratings companies upgraded Philippines’ sovereign debt
- The Philippine Stock Market is just behind Thailand in Asia in 2012
- Manila exchange’s benchmark index is up by 19.6% vs. 12% for MSCI Emerging Market Index
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