Philippines, Malaysia to lead ASEAN growth

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AquinoThe Philippines and Malaysia are expected to lead growth in Southeast Asia until 2015, thanks to reforms and projected roll-out of major infrastructure projects, British financial services giant Barclays Plc. said on December 1 according to a GMA News report.

“Within ASEAN, we expect the Philippines and Malaysia to lead growth rates,” Singapore-based Barclays regional economist Rahul Bajoria noted in the latest Global Economics Weekly.

Bajoria said the Philippines and Malaysia will see “strong growth” as “on going reforms and large infrastructure projects provide a solid foundation for economic activity.” The Aquino administration’s anti-corruption drive helped improve the debt dynamics, and tax collections reforms earned the Philippines three consecutive investment grade ratings from Fitch Ratings, Standard & Poor’s and Moody’s Investors Service in 2013.

It also aims to bolster transport networks, schools, health facilities by hiking public spending on infrastructure to 5 per cent of gross domestic product (GDP) from the current 2.5 percent and attract private sector investors through its public-private partnership (PPP) program.

But the lingering impact of super typhoon Yolanda, which flattened coastal towns and cities in Central Philippines last November 8, will subdue growth in the last quarter of 2013 before any favourable effect of reconstruction is felt in early 2014.

Barclays sees Philippine GDP growth hitting 6.8 per cent in 2013, and 6.5 per cent for both 2014 and 2015 trailing China’s above 7 per cent in emerging Asia. The bank sees Malaysia growing at 4.8 per cent in 2013, 5.4 per cent in 2014, and 5.3 per cent in 2015.

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Reading Time: 1 minute

The Philippines and Malaysia are expected to lead growth in Southeast Asia until 2015, thanks to reforms and projected roll-out of major infrastructure projects, British financial services giant Barclays Plc. said on December 1 according to a GMA News report.

Reading Time: 1 minute

AquinoThe Philippines and Malaysia are expected to lead growth in Southeast Asia until 2015, thanks to reforms and projected roll-out of major infrastructure projects, British financial services giant Barclays Plc. said on December 1 according to a GMA News report.

“Within ASEAN, we expect the Philippines and Malaysia to lead growth rates,” Singapore-based Barclays regional economist Rahul Bajoria noted in the latest Global Economics Weekly.

Bajoria said the Philippines and Malaysia will see “strong growth” as “on going reforms and large infrastructure projects provide a solid foundation for economic activity.” The Aquino administration’s anti-corruption drive helped improve the debt dynamics, and tax collections reforms earned the Philippines three consecutive investment grade ratings from Fitch Ratings, Standard & Poor’s and Moody’s Investors Service in 2013.

It also aims to bolster transport networks, schools, health facilities by hiking public spending on infrastructure to 5 per cent of gross domestic product (GDP) from the current 2.5 percent and attract private sector investors through its public-private partnership (PPP) program.

But the lingering impact of super typhoon Yolanda, which flattened coastal towns and cities in Central Philippines last November 8, will subdue growth in the last quarter of 2013 before any favourable effect of reconstruction is felt in early 2014.

Barclays sees Philippine GDP growth hitting 6.8 per cent in 2013, and 6.5 per cent for both 2014 and 2015 trailing China’s above 7 per cent in emerging Asia. The bank sees Malaysia growing at 4.8 per cent in 2013, 5.4 per cent in 2014, and 5.3 per cent in 2015.

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