Friday, October 11, 2013

...the PH virtuous cycle of investment

Philippines amid 'virtuous cycle' of investments, says Goldman Sachs exec







 
MANILA - Expect not only more investments in the Philippines, but also more local companies venturing overseas, following the country's promotion to investment grade, a Goldman Sachs executive said today.

In a media briefing, Goldman Sachs vice chairman Tim Leissner said the Philippine economy would grow 6.8 percent, or near the higher end of the government's target range of 6-7 percent for this year.

For next year, growth would settle at 5.5 percent.

"There’s a virtuous cycle right now of positive investments here," Leissner said.

He said the peso could appreciate to P40 against the US dollar next year from P43.5 this year on account of more inflows of portfolio and foreign direct investments.

“We’re not concerned more on risk, but on keeping the momentum. There’s a new gain of confidence level. They're starting to look outside the Philippines," Leissner said, referring to local companies.

He said local corporates -- including consumer and financial firms -- are starting to expand abroad, not only in Asia but also in the US.

In turn, international investing community is looking at the Philippines with interest, particularly in the area of infrastructure, which Leissner said should remain the government's focus.

“Philippines is one of the big investment destination because of the growth of confidence. The corporate and bond market will be very active. We see that in 2014. The tapering of the US which was held off for a while is good for the bond issuance and currencies as well,” Leissner said, referring to the US Federal Reserve decision to hold off the withdrawal of its economic stimulus.

 

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