The Philippines has been tagged by banking giant Standard Chartered Bank as one of the “rising stars” of global trade, joining 19 other countries with the greatest growth potential.
In the Trade20 Index report released by the bank on Wednesday, the Philippines took the 20th spot.
“The Standard Chartered Trade20 index tells the story of the rising stars of global trade, examining the progress that markets have made in the past decade to improve their potential for trade growth,” the lender said.
The other countries on the list were Côte d’Ivoire, India, Kenya, China, Ireland, Vietnam, Indonesia, Thailand, Oman, United Arab Emirates, Hong Kong, Russia, Ghana, Sri Lanka, Bahrain, Singapore, Switzerland, Chile and Turkey.
Standard Chartered said these markets are benefiting from regional trade deals, physical and digital infrastructure investments and increasing openness amid the US-China trade tensions.
“By expanding inward foreign investment, increasing trade readiness through improvements in infrastructure and the business environment or diversifying their exports, among other developments, these markets have put themselves in a better position to grow trade over the medium and long term,” it pointed out.
“What the Trade20 markets have in common, whether big or small, emerging or developed, is their pace of progress and the growing opportunity they offer,” the bank added.
It said the index points to high-potential markets that may be of interest in terms of future investment opportunities, or as import markets and supply chain partners.
Standard Chartered noted that these markets were identified by measuring changes in 12 metrics across three pillars: economic dynamism, trade readiness and export diversity.
“The Philippines scores particularly well for economic dynamism, driven by strong export and GDP (gross domestic product) growth,” it said.
The lender explained that economic dynamism gauges the economic performance of a market, measured by an increase in foreign direct investment, as well as export and GDP growth.
It predicted that the Philippines could join the so-called “7% Club,” countries with a GDP growth rate of 7 percent or more “over the next decade.”