Philippines retains rank among world’s fastest growing economies

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View over Quezon City, Metro Manila © Arno Maierbrugger

The Philippine economy grew 6.9 per cent in the third quarter, exceeding all analyst estimates and cementing its position as one of the fastest-expanding in the world, even narrowly overtaking China whose GDP grew by 6.8 per cent in the same quarter.

Behind the significant growth stands a series of reforms by the administration, as well as loans President Rodrigo Duterte has secured loans from China and Japan to help finance $180 billion of spending on projects such as the capital’s first subway and a network of railways and highways across the archipelago.

On November 14, China has pledged an estimated $7.34 billion in loans and grants to the Philippines for the implementation of the government’s flagship infrastructure projects and other priority programmes in a first lending round, the Department of Finance in Manila said.

More than $50 billion of remittances from Overseas Filipino Workers and solid revenue from the business process outsourcing sector is helping support consumer spending, and luring retailers such as home furnishing giant Ikea which is about to set up shop in Metro Manila.

Other reasons sustained growth in exports due to the low peso, and rising salaries of government personnel which further increased spending power.

Philippine has been growing by more than six per cent for nine consecutive quarters, placing the country alongside China, Vietnam, and India as fastest growing economies in the world.

Among the member countries of the Association of Southeast Asian Nations (ASEAN), Vietnam has been a strong contender. It has been outpacing the Philippines as the best performing economy in the ASEAN regional bloc since the fourth quarter of 2016 and now, in the third quarter of 2017, with 7.46 per cent growth.

Indonesia’s GDP has been expanding by 5.06 per cent, and Singapore’s 4.6 per cent. Malaysia reported growth of a surprising 6.3 per cent, and Thailand announced 4.3 per cent,

The Philippine government said that the country was still on track to achieving its goal of 6.5 per cent to 7.5 per cent for the full-year of 2017.

However, the World Bank, International Monetary Fund and rating agency Moody’s are putting the forecast rather at between 6.5 per cent or 6.6 per cent.

 

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Reading Time: 2 minutes

View over Quezon City, Metro Manila © Arno Maierbrugger

The Philippine economy grew 6.9 per cent in the third quarter, exceeding all analyst estimates and cementing its position as one of the fastest-expanding in the world, even narrowly overtaking China whose GDP grew by 6.8 per cent in the same quarter.

Reading Time: 2 minutes

View over Quezon City, Metro Manila © Arno Maierbrugger

The Philippine economy grew 6.9 per cent in the third quarter, exceeding all analyst estimates and cementing its position as one of the fastest-expanding in the world, even narrowly overtaking China whose GDP grew by 6.8 per cent in the same quarter.

Behind the significant growth stands a series of reforms by the administration, as well as loans President Rodrigo Duterte has secured loans from China and Japan to help finance $180 billion of spending on projects such as the capital’s first subway and a network of railways and highways across the archipelago.

On November 14, China has pledged an estimated $7.34 billion in loans and grants to the Philippines for the implementation of the government’s flagship infrastructure projects and other priority programmes in a first lending round, the Department of Finance in Manila said.

More than $50 billion of remittances from Overseas Filipino Workers and solid revenue from the business process outsourcing sector is helping support consumer spending, and luring retailers such as home furnishing giant Ikea which is about to set up shop in Metro Manila.

Other reasons sustained growth in exports due to the low peso, and rising salaries of government personnel which further increased spending power.

Philippine has been growing by more than six per cent for nine consecutive quarters, placing the country alongside China, Vietnam, and India as fastest growing economies in the world.

Among the member countries of the Association of Southeast Asian Nations (ASEAN), Vietnam has been a strong contender. It has been outpacing the Philippines as the best performing economy in the ASEAN regional bloc since the fourth quarter of 2016 and now, in the third quarter of 2017, with 7.46 per cent growth.

Indonesia’s GDP has been expanding by 5.06 per cent, and Singapore’s 4.6 per cent. Malaysia reported growth of a surprising 6.3 per cent, and Thailand announced 4.3 per cent,

The Philippine government said that the country was still on track to achieving its goal of 6.5 per cent to 7.5 per cent for the full-year of 2017.

However, the World Bank, International Monetary Fund and rating agency Moody’s are putting the forecast rather at between 6.5 per cent or 6.6 per cent.

 

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