The Philippines is no longer the sick man of Asia, and the world’s businesses know it.
With the country breaking new records in the stock market, sustaining a rising GDP growth rate, receiving positive international forecasts, and iconic Filipino optimism translating to consumer confidence – global investments are pouring into the country, now touted as the Asian star in the global economy.
GoodNewsPilipinas put together a list of good reasons why the world is bullish about business in this country, gathered from the best good business stories (so far) this year.
HERE ARE 7 GOOD REASONS TO DO BUSINESS IN THE PHILIPPINES:
1. The Philippines is one of the best performing stock markets in Asia
Investors were euphoric at the prospects of the Philippine economy, as the Philippine stock market marked the breaking of new record highs.
The Philippine Stock Exchange (PSE) Index finished in two successive record highs in October, boosting investor confidence amid expectations of tax overhaul and a plan for the liberalization of foreign ownership restrictions.
2. PHL economy growth pace has quickened and topped expectations
The Philippine economy grew beyond the forecast of a Reuters poll, marking its Gross Domestic Product at 6.5 percent by midyear.
Economists credit the rise of the country’s GDP to government-led construction boom and an extended rebound in the farm sector, and exports up nearly 14 percent in the six months to June. Household consumption also grew at a slightly faster pace.
3. Pinoys are the world’s most confident consumers
Filipinos are the most confident spenders in the world, putting their hard-earned money on new clothes, holidays or vacations, investments, and home improvements.
A consumer confidence survey conducted by Nielsen in August showed Filipinos topping the rankings globally, on top of even the United States which placed 4th.
Nielsen affirms that consumers in the Philippines have always been in the top three of the survey, noting that the economy is one of the strongest in Asia.
4. PHL economic growth forecasts have been upgraded for 2017 and 2018
The Philippines’ economic growth forecast for the years 2017 and 2018 has been upgraded in the latest Nomura Securities report.
The Nomura report released in April forecasts the Philippines’ GDP growing to 6.7% this year, noting the economy’s resiliency and relative protection from economic slowdown because of investment spending and private consumption continuing to prosper.
The GDP forecast upgrade largely banks on the strength of merchandise exports, specifically electronics which picked up demand from principal trading partners. Domestic demands also remain stronger than ever.
Economists note the country’s significant GDP growth is faster than other Asian peers.
5. PHL economy projected to sustain positive growth for 6 years
Netherlands-based global financial giant, ING, projects a positive growth rate for the Philippines under the 6-year term of the Duterte administration – with a relatively fast growth and low to moderate inflation.
ING economists foresee a 6.5 percent gross domestic product (GDP) growth rate until the year 2022 even if the country is placed on “autopilot.”
The positive GDP rate is expected to be driven by investments, higher fiscal spending, and robust domestic demand, with growth drivers now expanding to include agriculture and industry services.
6. PHL electronics industry expands with infusion of UK investment
The Philippines’ electronics industry is expanding with $20 M worth of investments from UK’s Dyson Electronics.
The British appliance maker is increasing the scale of its present operations in the country just over a year since its establishment, eyeing a big consumer market with the Filipino appreciation of technology and good design.
Dyson officials also noted the great engineering talent pool in the country, along with Filipinos’ English proficiency. The UK firm also eyes the strong supplier base which could save money from logistics cost. Dyson Philippines produces 20 percent of the company’s total global output.
7. PHL signs $6 B worth of business deals with Japan
Japanese investments are expected to pour into the Philippines in the coming years, as at least 18 business deals were signed recently between Philippine and Japanese firms.
The business deals are projected to yield at least $6 billion worth of new investments.
The signing of the Philippine-Japan business agreement is ascribed to the improved peace and order situation in the Philippines, as well as the strong Fil-Japanese relations.
In 2016, the Grant Thornton International Business Report ranked the country as 3rd most optimistic nation in global business in 2016, with Philippine businesses driven by strong prospects in revenues, exports, and the Association of Southeast Asian Nations (ASEAN) integration.
Also last year, the Philippine economy was heralded as the Asian star in the global economy, following a performance that outpaced even China, the world’s second largest economy.
These 7 good news stories about the Philippine economy show the country as staying on track as a prime investment and business destination.