The Philippine economy is projected to grow rapidly this year. Well, there is no doubt that Philippines can be the next tiger economy of the century assuming all other factors are constant. But what if those factors are not constant? Can we make it?
Last year (2012) the economy (real GDP) grew by 6.6%, one of the highest in Asia. The projection in 2013 is that economy will grow by 7%, magnifying our country as the next tiger economy. As a result, our economy moves to the watch list of many investors. If things will continue to be good in the next months beneficiaries will be extended up to the middle and lower class. The increase in investment will create jobs which will fuel consumption and savings, and in turn will translate to higher productivity (GDP).
The projected growth of the economy is supported by different government projects. The projection is that infrastructure development will triple this year. This means that most of the planned PPP projects will commence this year. In addition, stock market value is continues hike, this could indicate that the companies earnings are increasing or there could be over valuation in the stock price. Whichever is true, one thing is for sure, there is big confidence in the financial system of our economy. Recently, Philippines was upgraded to investment grade (BBB-) by Fitch Ratings, a credible global rating agency. This are some of the proofs that our economy is in its upward direction.
Despite of the positive sentiments about the growth of the economy, many issues are still need to be addressed by the government and private sector. It will be a long list if I will try to write them all here. Yet, it is still good to see that we are moving forward. That is what matters most; slowly but surely our economy is growing. This is something we should be proud of. Cheers!