Medha Samant, Investment Director of Fidelity Worldwide Investment says ASEAN countries offer a sustainable, long-term growth profile. She singles out the Philippines and explains why it is the new market darling for investors.
A Youthful Populace Helps Make the Philippines an Economic Bright Spot in Asia
By FLOYD WHALEYPublished: August 27, 2012
MANILA — In the upscale business district of Manila, a midweek crowd spills out into the street. The New York-themed Borough restaurant is pulsating to the beat of a Bon Jovi song, while young, hip Filipinos take shots of tequila from a passing tray and sing in unison.
“Whoa-oh, we’re halfway there!” the crowd sings. “Whoa-oh, livin’ on a prayer!”
The revelers have reason to celebrate. Times are pretty good in the Philippines if you are young, skilled and live in the city. Young urban workers are helping to give the country its brightest prospects in decades, economists say.
With $70 billion in reserves and lower interest payments on its debt after recent credit rating upgrades, the Philippines pledged $1 billion to the International Monetary Fund to help shore up the struggling economies of Europe.
“This is the same rescue fund that saved the Philippines when our country was in deep financial trouble in the early ’80s,” said Representative Mel Senen Sarmiento, a congressman from Western Samar.
The Philippines has certainly had a steady flow of positive economic news recently. On July 4, Standard & Poor’s raised the country’s debt rating to just below investment grade, the highest rating for the country since 2003 and equivalent to that of Indonesia.
The Philippines is the 44th-largest economy in the world today, according to HSBC estimates. But if current trends hold, it can leap to the No. 16 spot by 2050. The Philippine stock market, one of the best performers in the region, closed at a record high after the recent S.& P. rating upgrade, and the country’s currency, the peso, reached a four-year high against the dollar at about the same time.
The report noted the “remarkable reversal of fortune” that now sees “formerly risky countries like Indonesia and the Philippines” paying less to borrow from international capital markets compared to many eurozone member states.
The Philippines stands to benefit from an investment boom in the coming years fueled by prevailing low interest rates, according to the regional unit of an international accounting organization.
Philippines tourism authorities want to boost investments
Luc Citrinot - 23 August 2012, 10:22
“Tourism is about selling the whole country – its attractions, services, culture, and people. This initiative is linked with our campaign “It’s more fun in the Philippines”, in cultivating a culture of competitiveness and establishing the Philippines as a challenger brand in the region. Collectively, we must work towards achieving an ideal business environment to attract more tourists and investments,” - Sec. Jimenez, DOT
The Department of Tourism (DOT) revealed its plans to improve the investment climate during the recent Asian Development Bank (ADB) Regulatory Impact Assessment (RIA) seminars in Davao City and Cebu City hosted three weeks ago.
The Philippines is the best performing market in Asia.
The Phil. economy grew at the fastest rate in 2012 and the country's unemployment rate fell to record lows. The government emphasizes on sustainable growth.
"The Philippines is forecast to post a Gross Domestic Product (GDP) growth of 7.3% during the period, making it the 6th fastest growing economy in the world." - World Wealth Report
MANILA, Philippines - The Philippines is expected to be among the fastest growing economies in the world between 2010 and 2050, according to a study released by Knight Frank and Citi Private Bank.
In the 2012 Wealth Report, the Philippines is forecast to post a Gross Domestic Product (GDP) growth of 7.3% during the period, making it the 6th fastest growing economy in the world.
The Philippines registered a 7.3% growth in 2010, but slowed down to 3.6% in 2011 as the global economy hit demand for Philippine exports and the government spent less-than-planned on infrastructure projects.
The Philippine government expects the local economy to stay resilient despite the economic challenges of key trading partners in the west. It is targeting a 5% to 6% growth this 2012 -- slower than the 2012 Wealth Report's annual growth forecast.
This 2012 Wealth Report mirrors a study released in January by HSBC, which forecast that the Philippines could become the world’s 16th largest economy by 2050.