ASEAN KEY DESTINATIONS
Manila economy to hit US$1 trillion in 2030
THE Philippines is projected to become a one-trillion-US dollar economy by 2030, international analytic firm IHS Global Insight said in a study released the day before yesterday.
The IHS also cited the Philippines as the only sovereign entity in Asia with improving credit prospects. IHS is a global source of information, insight and analytics, providing data and expertise to business and around the globe.
IHS cited the trend of improving financial fundamentals, investor confidence, and governance standards in the Philippines.
IHS reports are used as reference by other organisations including credit-rating agencies, investment banks, and development institutions.
In its “Sovereign Risk Review” report for the third quarter of 2015, IHS said it upgraded its outlook on the Philippines’ credit rating from “stable” to “positive”.
The improved outlook means that the Philippines’ existing credit rating with IHS, set at the minimum investment grade of “BBB-“, has a chance of being raised over the near term.
The Sovereign Risk Review compares and assesses every sovereign across ratings agencies.
The Philippines’ current account — fueled by remittances, revenues from the business process outsourcing industry, and tourism receipts, among others, posted a surplus of $4.7 billion during the first six months of 2015. The country’s current account has been in surplus for 12 consecutive years since 2003.
The Philippines’ general government debt as a percentage of gross domestic product (GDP), a measure of debt manageability, is on a downward trend. It stood at 36.2 per cent as of end-June 2015, consistently declining from a peak of 68.1 per cent in 2003.
Rajiv Biswas, IHS chief economist for Asia-Pacific, estimated that the Philippines, with a gross domestic product of about $292 billion, has the potential to become a 695-billion-US dollar economy by 2025 and over a one-trillion-US dollar economy by 2030.
“Two important growth drivers for the Philippines’ economy are the rapidly growing information technology-business process outsourcing (IT-BPO) sector and the strong flow of remittances from Filipino workers abroad,” Biswas said.
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