14 May 2015

PHL Is World's 2nd Fastest Economy

PHL Economy
Despite attempts to downplay the achievements of President Benigno Aquino III, business groups, economists and financial experts all agree that the Philippines has become a viable investment option because of its strong economic fundamentals and impressive growth under the present administration

The business confidence was supported by a Bloomberg survey of economists which shows the country is the second fastest-growing economy in the world this year, second only to China.

Bloomberg's survey says the Philippines and China are the only two economies out of 57 included in the report that will grow 6 percent or more this year. This observation was based on average economists' estimates.

Various analysts have said the Philippines is one of the biggest beneficiaries in the world from lower oil prices.

"The world is expected to grow 3.2 percent in 2015 and 3.7 percent next year after expanding 3.3 percent in each of the past two years, according to a Bloomberg survey of economists. China, the Philippines, Kenya, India and Indonesia, which together make up about 16 percent of global gross domestic product, are all forecast to grow more than 5 percent in 2015," Bloomberg said.

Malaysia, an oil producer that is being hit by lower oil prices, will see growth slow from 6 percent to less than 5 percent.

Also in the top 5 are Kenya and Nigeria. Many economists are pointing to Africa as the next fast-growth region after Asia.

President Aquino's current economic policy has created a ripple effect in many aspects:
  • Export growth: Philippine merchandise exports increased by 7.6 percent, amounting to US$ 51.99 billion.
  • Employment generation: As of 2012, there are 493,000 Filipinos employed in the contact industry.
  • Telecommunication sector growth: In spite of reduced telephony spending worldwide due to recession, telecom business in the Philippines grew by US$ 8 million last year.
  • Real estate growth: Because of BPO, there is greater demand for office spaces and buildings. At the same time, there is also a bigger middle-class market that demands for more subdivisions, townhouses, and residential condominiums.
  • Rise of small businesses: The huge demand for food outlets in BPO offices and buildings, especially for 24/7 stores that cater to nightshifters, has encouraged the rise of fastfood outlets, restaurants, and convenience stores.
  • Transportation growth: With the rising employment population, there is a huge demand for transport services, especially those that go beyond regular office hours.