8% potential growth for PHL by 2016 – Moody’s Analytics
By Ma. Alaine P. Allanigue
Philippine Information Agency
Monday 29th of April 2013
Philippine Information Agency
Monday 29th of April 2013
QUEZON CITY, April 29 (PIA)--The Philippines economy has the potential to grow up to eight (8) percent in the coming years as seen by the Moody’s Analytics, a sister company of credit rating watchdog Moody’s Investor Service.
“We expect GDP growth to remain in the 6.5% to 7% range in 2013 and 2014, making the Philippines one of the world’s fastest-growing economies,” Glenn Levine, senior economist at Moody’s Analytics said in Philippines Outlook: Asia’s Rising Star.
According to Moody’s Analytics, growth would be sustained in 2013 through construction and business process outsourcing which is a big part of Philippines’ exports as well as the country’s demographics, “promising a growing workforce in coming years” as a third of Philippine population is less than 14 years old.
The anticorruption agenda of the Aquino administration and its reform programs had also improved business sentiment in the country, Moody Analytics said.
“The government’s 2011-2016 development plan provides a five-year blueprint for growth and development, providing transparency, predictability and accountability. The crackdown on corruption and encouragement of local and foreign investments, in particular, have worked well,” it said.
On the other hand, Moody’s Analytics also stated that the “biggest risk for Philippine investment is operational.”
It said that “if the government wants to attract more foreign investment, it must ease its restrictions on foreign ownership and streamline the rules for starting businesses, paying taxes, and dealing with workers,”.
Moody’s Analytics pointed out public investment only accounts for 2.75% of GDP, which is "far too low for a country at this stage of development."
There has been improvement in infrastructure according to Moody’s Analytics but the government will need to do more if it wants to sustain the growing performance of the country’s economy.
“If development and reform continue near their current pace, the Philippines’ potential rate of growth will rise towards 8 percent by 2016,” Moody’s Analytics added. (RJB/MAA/PIA-NCR)
“We expect GDP growth to remain in the 6.5% to 7% range in 2013 and 2014, making the Philippines one of the world’s fastest-growing economies,” Glenn Levine, senior economist at Moody’s Analytics said in Philippines Outlook: Asia’s Rising Star.
According to Moody’s Analytics, growth would be sustained in 2013 through construction and business process outsourcing which is a big part of Philippines’ exports as well as the country’s demographics, “promising a growing workforce in coming years” as a third of Philippine population is less than 14 years old.
The anticorruption agenda of the Aquino administration and its reform programs had also improved business sentiment in the country, Moody Analytics said.
“The government’s 2011-2016 development plan provides a five-year blueprint for growth and development, providing transparency, predictability and accountability. The crackdown on corruption and encouragement of local and foreign investments, in particular, have worked well,” it said.
On the other hand, Moody’s Analytics also stated that the “biggest risk for Philippine investment is operational.”
It said that “if the government wants to attract more foreign investment, it must ease its restrictions on foreign ownership and streamline the rules for starting businesses, paying taxes, and dealing with workers,”.
Moody’s Analytics pointed out public investment only accounts for 2.75% of GDP, which is "far too low for a country at this stage of development."
There has been improvement in infrastructure according to Moody’s Analytics but the government will need to do more if it wants to sustain the growing performance of the country’s economy.
“If development and reform continue near their current pace, the Philippines’ potential rate of growth will rise towards 8 percent by 2016,” Moody’s Analytics added. (RJB/MAA/PIA-NCR)
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