Ph economy to zoom past peersBy Randell Tiongson on April 2nd, 2015
We have been reading a lot of positive news about the Philippine economy. Despite the cynicism of many, our economy continues to grow and has been attracting a lot of deserved attention. For 2015, we are poised to continue to grow and not only are we expected to perform well, we are expected to outperform our peers.
In a recent article by the Business World, it stated the we are to outpace our peers. Click HERE to read the article.
Bloomberg, a leading finance media also reported that the Philippines is expected to place 2nd in terms of economic growth, just below the economic behemoth China. To read Bloomberg’s article, click HERE
Despite the bullishness, the Philippine economy is not without any threats:
- Poverty and high un/underemployment
- Rising inflation
- Power deficits
- Natural disasters
- Logistic problems – port congestion, truck bans, etc.
- ASEAN – more competition from foreign companies (for market share and skilled labor and professionals)
- Political uncertainties (going into 2016 elections); continuation of economic and governance reforms
However, the economic threats are shadowed by opportunities:
- Transiting to higher levels of economic growth
- Sectoral and regional growth drivers)
- Increasing GDP per capita
- Peace dividends – expanded markets in Mindanao
- ASEAN integration – larger market for expansion and FDI attraction
- ASEAN – lower import prices for inputs
- Demographic Sweet Spot (majority of population now in the working/productive age)
I grew up always hearing that there is little hope for the Philippine economy, that we are buried in debt and that we are the ‘sick man of Asia’. Today’s ‘millennial’ generation are hearing another story and I pray that they will pass on the nation to their next generation in an even better shape.
Let us continue to honor the Lord for what He has been doing to our nation…
“Blessed is the nation whose God is the LORD, the people he chose for his inheritance.” — Psalm 33:12, NIV