Despite fears of a global slowdown in the US and other countries as well as lower government spending, the Philippines remains a faster-growing market compared to the rest of Southeast Asia, affirms EastWest Senior Vice President and Trust Officer Rob Ramos.
The Philippine economy’s growth is remarkable considering that our own spending on domestic infrastructure and development projects are slowing down and the Asian Development Bank cut the country’s GDP growth forecast to 6.2 percent.
“Our local growth is slower than we projected, but if you look around globally, our relative growth at roughly six percent is still faster than everybody else,” said Ramos. “Everybody was expecting to grow at X percent, but now they’re probably growing at X minus .2 or .3 percent.”
“So what happens is simply foreign money will be going into the country because everywhere else, growth is slower than in the Philippines,” he said. “[Investors] will probably go [here] where growth is seen to be 5.6 to 6 percent.”
According to Ramos, the Philippines can retain its top position through two factors: global interest rates staying on the downtrend and corporate earnings meeting their double-digit targets.