“PHL to be among least at risk from global shocks”
The Philippines is less vulnerable to external shocks due to uncertainties from the impending interest rate hike in the United States (U.S), weaker-than-expected recovery in Japan, and China’s economic woes, separate studies, conducted by international ratings agency Standards and Poor’s (S & P), Fitch Ratings, and Moody Investors Showed. (“PHILIPPINE BUSINESS REPORT VOLUME 26 No. 11 November 2015”)
“ASIA-PACIFIC Sovereigns Fitch Ratings Head Andrew Colquhoun”
Identified the Philippines, together with India and Vietnam, as emerging market economies that will least likely be affected by global economic problems. Fitch cut its global growth forecast for 2015 to 2.3%, the lowest rate since 2009. However, it sees the emerging market’s gross domestic product (GDP) growth to increase up to 2.7% in 2016 and 2017. On the same note, S&P named the Philippines, Mexico, and Poland as the least vulnerable emerging market economies to be affected by the tightening global liquidity, financial deleveraging, and a slowdown of China’s economy. (“PHILIPPINE BUSINESS REPORT VOLUME 26 No. 11 November 2015”)
“PHL can rise to the top 20% in global competitiveness index”
The Philippines aims to move into the top 20% in global competitiveness index in the next five years, after hitting its goal to rise into the top 305 and ranked 47th among 140 countries in the Global Competitiveness Report 2015-2016,
National Competitiveness Council (NCC) Private Sector Co-Chairman Guillermo M. Luz said. To be in the top 20%, the country must surpass 18 countries which are tougher and more competitive but this is possible given the fact that the Philippines was able to overtake 38 countries in the past 5 years, Luz said. Since 2010, the Philippines placed 38 notches higher, the biggest jump in the Association of Southeast Asian Nations(ASEAN), in five years. In the survey, the Philippines reached 47th from 52nd spot, a huge improvement from the 82nd rank in 2010. The Global Competitiveness Report is an annual publication of the World Economic Forum (WEF) that provides a comprehensive picture of the productivity and competitiveness by gathering statistical and survey data on over 114 indicators grouped into 12 pillars in 140 countries. It is one of the most widely read competitiveness reports and is highly correlated to investment attractiveness. (“PHILIPPINE BUSINESS REPORT VOLUME 26 No. 11 November 2015”)
PHL’s Scores in the Global Competitiveness Report 2015-2016”
∞ Labor Market Efficiency (up 9 from 91st to 82nd).
∞ Health and Primary Education (up 6 from 92nd to 86th).
∞ Market Size (up 5 from 35th to 30th).
∞ Business Sophistication (up 4 from 46th to 42nd)
. ∞ Innovation (up 4 from 52nd to 48th).
∞ Macroeconomic Environment (up 2 from 26th to 24th).
“The PHL’s greatest grains in the last Five Years”
Innovation (up 63 from 111th to 58th).
∞ Institutions (up 48 from 125th to 77th).
∞ Macroeconomic Environment (up 44 from 68th to 24th).
∞ Research and Development (up 49 from 85th to 36th).
∞ Government procurement of advanced technology products (up 70 from 129th to 59th).
∞ Government budget balance (up 49 from 63rd to 14th).
∞ Government debt (up 48 from 102nd to 54th).
∞ Gross national savings (up 26 from 74th to 48th).
“Young population to propel PHL”
The government’s rising budget for human capital development to improve its quality workforce amid the rising number of young population would help groom the Philippines to become a major economic powerhouse over the long term,
Investor Relations office (IRO) Executive Director Editha L. Martin said. Investments in health and education will help ensure that the Philippines seize the window of opportunity offered by its entry to the “Demographic Window” and make the economy reap the dividends, Martin said. Starting this year until 2050, the Philippines is within the “Demographic Window”, a period when a great majority of the population are of working age. The county’s working-age population (between 15 and 64 years old) this year accounted for 66.6% of the total population of 101.6M. It is expected to rise to 68% of 110M people in 2020, and further to 70.6% of 125.3M in 2030. (“PHILIPPINE BUSINESS REPORT VOLUME 26 No. 11 November 2015”)
“Government Budget for Health, Education, and Social Services fo FY 2015”
Services Amount in Billion Php
∞ Education 367.0
∞ Health 108.2
∞ Social Work and Development 62.3 Conditional Cash Transfer
“BPO revenue generation to grow faster”
The business process outsourcing (BPO) sectors revenue generation between 15% to 18% and generate USD 3.7B annually or 33B over a nine-year period until 2025, real estate firm CBRE project. “The Philippine BPO sector will continue to thrive in the next years because the country provides a conducive environment for foreign investors – an excellent pool and low cost of skilled labor, outstanding customer service, and quality destination”,
CBRE Philippines Chief Executive officer (CEO) Rick M. Santos said. Next year the BPO industry is expected to engage 1.3M full time employees (FTEs). CBRE forecasts that BPO FTEs will reach 2.23M by 2025 or 105,000 new hires annually and will hit 3.3M by 2035. BPO hotspots in the country includes the National Capital Region(NCR), CALABARZON (Cavite, Laguna, Batangas, Rizal, and Quezon), Davao-General Santos Area, Cebu Province, Dumaguete City, Bacolod, and Bohol Province, CBRE said. (“PHILIPPINE BUSINESS REPORT VOLUME 26 No. 11 November 2015”) “23rd
APEC Economic Leaders’ Declaration Building Inclusive Economies, Building a Better World: A Vision for an Asia-Pacific Community” Building Inclusive Economies
- To support comprehensive and ambitious structural reforms; achieve positive economic, social, and environmental outcomes; and promote good governance.
- To deepen our financial markets and mitigate risks.
Fostering Micro, Small and Medium Enterprises’ Participation in Regional and Global Markets
- To foster an enabling trading environment that is responsive to new ways in which goods and services are produced and delivered and that promotes inclusiveness, especially for MSMEs.
Building Sustainable and disaster-resilient Communities
- To build sustainable and disaster-resilient economies.
- To make urbanization work for growth.
Investing in Human Capital Development
- To redouble our efforts to empower with the tools to benefit from and participate in economic growth.
Enhancing the Regional Economic Integration Agenda
- To achieve our vision for an integrated community in a comprehensive and systematic manner.
- To develop the services sector as an enabler of economic growth and inclusion.
- To work with stakeholders to address common challenges.
- To strongly support the work of our Ministers, the APEC process, and all its’ Committees and Fora. (“PHILIPPINE BUSINESS REPORT VOLUME 26 No. 11 November 2015”)