Philippines in the early stages, says Citi

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Citibank’s regional headquarters in Manila, Philippines

The Philippines is in the “early stages” of becoming an investment-driven community, US-based financial services major Citi said in a recent analysis on the country’s economy and development prospects.

Citi economist Jun Trinidad said in the report titled “Philippine Macro View: Laying the Foundation for Investment-Driven Growth” that “the combination of robust economic growth and benign inflation in 2012 indicated that investments had started to play a more significant role in driving the economy.”

Should this persist in 2013, Trinidad said, the Philippines would enjoy robust economic growth without the baggage of faster inflation.

The report suggested that the Philippines stay in the so-called” sweet spot” — a point where economic growth is high and inflation is modest.

The World Bank has in December 2012 raised its GDP growth forecast for the Philippines in 2013 to 6.2 per cent from from 5 per cent. The country grew year on year by 7.1 per cent in the third quarter of 2012, and by an average of 6.5 per cent in the first three quarters 2012.

However, the country is also struggling to curb the strong peso which closed 2012 at its strongest level in five years, making goods and services exports more expensive and threatening the low-cost advantage of the country, see our earlier story.

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Reading Time: 1 minute

Citibank’s regional headquarters in Manila, Philippines

The Philippines is in the “early stages” of becoming an investment-driven community, US-based financial services major Citi said in a recent analysis on the country’s economy and development prospects.

Reading Time: 1 minute

Citibank’s regional headquarters in Manila, Philippines

The Philippines is in the “early stages” of becoming an investment-driven community, US-based financial services major Citi said in a recent analysis on the country’s economy and development prospects.

Citi economist Jun Trinidad said in the report titled “Philippine Macro View: Laying the Foundation for Investment-Driven Growth” that “the combination of robust economic growth and benign inflation in 2012 indicated that investments had started to play a more significant role in driving the economy.”

Should this persist in 2013, Trinidad said, the Philippines would enjoy robust economic growth without the baggage of faster inflation.

The report suggested that the Philippines stay in the so-called” sweet spot” — a point where economic growth is high and inflation is modest.

The World Bank has in December 2012 raised its GDP growth forecast for the Philippines in 2013 to 6.2 per cent from from 5 per cent. The country grew year on year by 7.1 per cent in the third quarter of 2012, and by an average of 6.5 per cent in the first three quarters 2012.

However, the country is also struggling to curb the strong peso which closed 2012 at its strongest level in five years, making goods and services exports more expensive and threatening the low-cost advantage of the country, see our earlier story.

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