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Philippine economy to attract more investment
NOW is the best time to put your money in the Philippines. Two international credit rating agencies trusted by investors worldwide, Fitch and Standard & Poor’s gave the Philippines investment grade.
For the first time in decades, Fitch, on March 27 raised the PH investment grade to BBB- from BB. The Philippine government credits this to sound macroeconomic fundamentals, underpinned by good governance reforms as well as the Philippines’ good economic prospects. According to Fitch, some of the bases for the ratings are the Philippines’ strong sovereign external balance sheet relative to “A” range peers, let alone “BB” and “BBB” category medians; its resilient economy, expanding 6.6% in 2012 amid a weak global economic backdrop; improvements in fiscal management which have made general government debt dynamics more resilient to shocks; the Philippines’ strong economic growth and moderate budget deficits have brought the general government (GG) debt/GDP ratio in line with the “BBB” median. Other factors, which led to the upgrade were the favorable macroeconomic out-turns supported by a strong policy-making framework and the Philippines’ governance standards, which are not inconsistent with a “BBB-“ rating. Governance reform has been a centerpiece of the Aquino administration’s policy efforts. Entrenching these reforms by 2016 is a policy priority of the government. Upon receiving the Fitch ratings, the Philippine government issued a statement that it looks forward to more investments especially from institutions given that these allow investment of funds in investment-grade countries only. This would result it more funds for social development, infrastructure and other areas for economic development due to lower costs for government debt. Shortly after receiving this vote of confidence from Fitch, Standard & Poor’s also rated the Philippines BBB-, with stable outlook. In its press release, S&P cited the following key drivers for the upgrade: Strengthening external profile, moderating inflation and the government’s declining reliance on foreign currency debt. S&P highlighted that the “Philippines has built a substantial foreign exchange reserve buffer through having a long record of current account surpluses, along with modest net foreign direct investments (FDI) inflows and net portfolio equity inflows. The buffer makes for low refinancing risk and an import cover ratio well above prudential norms.” S&P also cited the country’s improved fiscal flexibility through restraining expenditures, reducing the share of foreign currency debt, deepening domestic capital markets, and more recently through modest revenue gains. Despite these favorable ratings, the Philippine government will work on maintaining what it has achieved so far. Secretary of Finance Cesar Purisima said that “The Philippine government will continue to focus on infrastructure development, on creating a larger fiscal space to support social investments, and on further opening up the economy.” Philippine Central Bank Governor Amando M. Tetangco Jr. said that the Central Bank will remain vigilant against risks associated with greater inflows. For inquiries on investment and to access important forms, kindly visit the following links:http://www.boi.gov.ph; http://investphilippines.gov.ph |
The Philippines or the Republic of the Philippines (officially), is a Southeast Asian country. It is an archipelago of 7,107 islands located in the western Pacific Ocean. Manila is its capital city.
Geographically, the Philippines can be divided into three parts, namely, Luzon, Visayas, and Mindanao. With all these islands combined, the country’s coastline is the fifth longest in the world, spanning 36,289 kilometers. It is considered as Asia’s largest Catholic country of Asia, since Spanish colonial times. Further, the Philippines is the world’s 12th most populated country with approximately 92 million people (as of 2009). The country can be reached by plane. Other means of traveling are not feasible as the Philippines is an archipelago. Some major airports are in Manila, Cebu, Davao, Clark (Angeles), Kalibo, Laoag, Subic (Zambales), and Zamboanga. 1 . The Philippine Development Plan 2011-2016
2. Philippines is a Leading Asian Tiger Economy of the World. 3. Philippines Speedy Economic Growth 4. The New Philippines 5. The Philippine Economy, One of the Fastest in Southeast Asia! 6. Philippines `Strongest' Economy in Asia - Business Week 7. Breaking News: Philippines Beats Global Stocks |
For announcement purposes only.
All details are subject to change without prior notice and do not form part of an offer or contract.
Contact us at 0906 264 4377 or use the contact form
All details are subject to change without prior notice and do not form part of an offer or contract.
Contact us at 0906 264 4377 or use the contact form
