We have been reading and hearing a lot of good news about the Philippine economy, the uptrend of the Philippine Stock Market, as well as the status of our GDP. Despite the some negative connotation of many, the Philippine economy continues to expand and grow and we believe this growth has been attracting a lot foreign investor not only in Asia but from around the world.
PHL seen outpacing peers till 2016
"THE PHILIPPINES could further eclipse its peers in the region this year and next as the economy is projected to grow faster than initially expected in both periods, Standard & Poor’s (S&P) said in a new report it released yesterday, citing the country’s strong domestic activity.
Bullish business sentiment, coupled with low inflation and higher government spending, likely prodded economic growth to 6.5-7% in the first quarter of 2015, First Metro Investment Corp. (FMIC) and the University of Asia and the Pacific (UA&P) said separately yesterday.
In a report, titled: “Slowing China The New Norm: Balancing Credit Stability And Continual Tailwinds,” S&P said Philippine gross domestic product (GDP) could grow by 6.2% in 2015 and 6.4% in 2016. Both estimates are slightly faster than the 6.1% and the 6.3% S&P had given in February for the respective years.
The forecasts, however, still fall short of the 7-8% growth sasaran the government had set for both years.
Nevertheless, the global debt watcher expects the Philippines to continue to be the main growth engine in Southeast Asia, which is projected to grow at an average pace of 5.1% this year and 5.3% in 2016.
The report said the Philippines will “continue to see strong consumption and investment” this year and next.
Asked to elaborate, S&P economist Vincent R. Conti said in an e-mail: “We continue to expect the Philippine economy to expand by around 6% per annum over the next few years, driven by robust consumption and investment growth.”
“This strength in the domestic economy will be underpinned by the growing outsourcing sector and the rising middle class.”
Last year, economic growth came in at 6.1%, a few points shy of the government’s 6.5-7.5% sasaran after a five-quarter-high of 6.9% was logged in October-December. Crawling farm sector output and lower-than-programmed -- and at times even contracting -- state spending had weighed on growth for much of last year."
Asked to elaborate, S&P economist Vincent R. Conti said in an e-mail: “We continue to expect the Philippine economy to expand by around 6% per annum over the next few years, driven by robust consumption and investment growth.”
“This strength in the domestic economy will be underpinned by the growing outsourcing sector and the rising middle class.”
Last year, economic growth came in at 6.1%, a few points shy of the government’s 6.5-7.5% sasaran after a five-quarter-high of 6.9% was logged in October-December. Crawling farm sector output and lower-than-programmed -- and at times even contracting -- state spending had weighed on growth for much of last year."
Source: bworldonline.com
Foreign stock investors like Indonesia...but love Philippines
"Net foreign purchases of Philippine shares jumped to $1.1 billion in January-to-March, the highest for any quarter in almost three years and more than twice the net volume of funds flowing into Southeast Asia's biggest economy Indonesia.
Government stimulus programmes in Japan and Europe have unleashed a global flood of liquidity. Investors have flocked to the Philippines, drawn by strong corporate earnings, analysts say. The broad market index in Manila has clocked 27 record finishes so far this year. The benchmark has also been boosted by the increased weighting of the country in the MSCI Emerging Markets and MSCI Asia ex-Japan indexes in February.
"We see lots of funds coming into Asia, and particularly, in the Philippines. That's why index shares are being pushed up," Rafael Algarra, executive vice president of Security Bank Corp's treasury division, told Reuters. In contrast, Indonesia and Vietnam posted $416 million and $18 million in net foreign stock buying, respectively. Thailand recorded $260.02 million in net selling, Reuters data shows.
Foreign funds are enticed by the outlook for the consumption-driven Philippine economy versus those of its neighbours, said Michaelangelo Oyson, president of the securities arm of Bank of the Philippine Islands. The big winners in the first quarter included snacks and beverage maker Universal Robina Corp, and conglomerates LT Group Inc and GT Capital Holdings Inc, both of which own consumer goods businesses, Oyson said."
Source: reuters.com
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