• ‘PH among Asean growth leaders‘

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    Moody ‘s sees PH, along with Vietnam, Indonesia as region‘s top growth drivers

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    Vietnam, Indonesia and the Philippines are anticipated to be the economic drivers of growth in the Association of Southeast Asian Nations (Asean) in 2016 and 2017, Moody’s said in a report.

    In an Inside Asean report forwarded to the media on Tuesday, credit rating agency Moody’s Investor Service said growth in the region is expected to be “subdued” given lower global demand affecting the export-oriented countries in the region.

    asean“The growth prospects of Asean’s major export-orientated economies—Singapore, Malaysia and Thailand—will remain weaker than those of more domestic demand-driven economies, Indonesia and the Philippines, in 2016 and 2017,” Rahul Ghosh, Moody’s vice president and senior research analyst, said.

    Moody’s also pointed to Vietnam as a regional growth outperformer toward 2017 on the back of robust manufacturing activity and strong foreign direct investment flows.

    Moody’s said export growth is slumping across the region, but its economic impact will vary according to the countries’ dependence on trade, as indicated by its trade to GDP ratio.

    Acc ording to the ratings agency, total trade—the sum of exports and imports— accounted for 346 percent, 131 percent and 130 percent of the GDP of Singapore, Malaysia, and Thailand, respectively.

    These percentages are higher than the trade to GDP ratios of Indonesia (41 percent) and the Philippines (58 percent).

    “Singapore, Malaysia, and Thailand are susceptible to a prolonged period of subdued global demand via both the export channel and weaker investment demand,” Ghosh said.

    “We forecast G20 GDP growth at 2.6 percent in 2016, similar to last year and rising to only 2.9 percent in 2017. And downside risks to global growth are increasing,” he added.

    Moody’s said economic expansion in Indonesia and the Philippines will likely strengthen in 2016 and 2017, with domestic demand providing the main engine of growth.

    The ratings firm noted that gross fixed capital formation growth of the Philippines is accelerating rapidly, and is picking up pace in Indonesia as well.

    “In each case, public investment contributed to the pickup as governments in both countries sought to gain further traction in developing much-needed infrastructure,” Moody’s said.

    “Lower oil prices have provided a greater lift to economic growth in the Philippines, with household consumption growing in excess of 6 percent for only the second time over the past 25 years,” it added.

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    5 Comments

    1. Philippines among the growth leader. Idiot mostly officials are corrupted and exempted in taxes.

      • Sonny Dungca on

        fyi, your remark is irrelevant to the topic! Are you a thinking person or you don’t have the brains to think?

      • Maybe you haven’t heard, a Philippines bank ( RCBC ) just stole 4 billion peso’s from a Bangladesh bank

        Want to eliminate the stink from dirty money, stolen money and money earned from organized crime? Come to the Philippines. The money laundering capitol of the world.

    2. Rosauro Feliciano on

      The total war against corruption and drug is a must to be in the platform of any elected president in order to break the bottle neck that slow down our progress. We must elect a presidential candidate who has a very strong political will do go after corrupt officials in the government.