PH: fastest growing economy in ASEAN

Posted on Tue, 01/16/2018 - 08:17

It’s a new year and the Philippine economy is doing well. Too well, in fact, as the country is considered to be the fastest growing ASEAN-5 country.

According to the World Bank, there is an estimated 6.7% gross domestic product (GDP) growth for the Philippines this year. The Philippine government also forecasts that there would be a growth estimate of 7%.  The implementation of the Tax Reform and Acceleration Law (TRAIN) signed by President Rodrigo Duterte last December 2017 may be one of the reasons for the country’s growth.  This law allows more infrastructure building in the country, allowing an increase of jobs and opportunities for Filipinos. Also, the TRAIN law will have a possible impact on the country’s inflation.

Another reason for the country’s improved standing is due to the recovery of the global economy; as developed countries improve, so do developing countries like the Philippines. “A simultaneous recovery in major advanced economies and in developing economies is boosting global trade. For the Philippines, this means stronger demand from main trading partners such as the United States, Japan, and Europe,” said the World Bank in recent statements.

It’s also bullish for the Philippine Stock Exchange index (PSEi), as it is anticipated to hit 9,400 this year. According to First Metro vice president Cristina Ulang, this development would encourage investors to take advantage and surely, this would help increase the country’s credibility in terms of handling foreign investments.

Indonesia, Malaysia, Singapore, and Thailand are also Southeast Asian countries that have shown exceptional economic growth the past year.