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Good news, errbody! According to a WSJ blog entry written by Rachel Rosenthal, after China, we have the fastest growth rate in East Asia.
“The country notched growth last year of just over 6%, and the central bank targets growth of 7% to 8% in 2015. That compares with 0.9% in Thailand and 5% in Indonesia in 2014,” writes Rosenthal.
Among Rosenthal’s many points are Aquino’s anticorruption drive, the importance he gives to private-public solutions on infrastructure, a growing working-age population that speaks English, and a large OFW workforce.
“It’s going to be one of those countries that’s likely going to grow just because they’re getting a few things right, and those few things are actually quite important,” the article quotes HSBC economist Trinh Nguyen.
According to the report, private consumption generated 60% of the growth last year, with remittances growing 7% annually since 2009, with remittances in March shooting up to 11%.
Of course, there are concerns raised. With a stronger Peso, demands for exports have tapered. January and February remittances were a tad slower, which concerns the Central Bank.
Writes Rosenthal, “Another risk is the country’s dependence on foreign investment in stocks and bonds, which can quickly be yanked out of the country if the U.S. raises interest rates later this year. That could force the Philippines to follow suit, stunting growth.”
Photo: Ninjakeg/Wikipedia
