April 21, 2015

Philippines Economy in 2015

Philippines Economy 2015

Philippines economy is set to remain on high levels this year. The growth of Philippines is due to stable large consumer population. Private building construction is seen to maintain its growth momentum, with a projected growth of 17% this year (based on approved building permits), which indicates extra cash from the pockets of the consumer and openness of bank credits. The additional push would be coming from the government construction projects – when and how this project will be executed remains the question and would be a big factor in the economic growth.

While Overseas Filipino Workers (OFW) is seen to slow due to slowdown in global economy, remittances remain stable which is projected to grow by 5.54% this year. The game changer in the Philippines economy would be how to financially include the poor in economic growth, which is majority of the population. One of the main solutions remains the creation of jobs that does not require high educational skills. Even the new graduates of universities are having difficulty of landing a job, how much more to those who are not educated. Another solution is to encourage the youth to create start-up businesses with the help of government and private institutions by providing seed funds, incubations, and right information. Moreover, the development of agriculture sector – which is one of the core strengths of the country – could pave way to higher growth level.

On other hand, energy supply and cost remains blurred and could significantly affect growth negatively if not given a focus. There are some utilities (renewable and non-renewable energy) projects being constructed in the country, but the impact has not been felt.

Based on Philippine Economist Database, Philippines Gross Domestic Product (GDP) growth this year 2015 is projected to remain on high levels at 7.05%. Q1, Q2, Q3, and Q4 2015 growth is projected to hit 7.19%, 6.59%, 7.68%, and 6.80% respectively.

1 comment:

  1. Creating jobs will be the main challenge in the next decades


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