January 30, 2015

ALONG THE ANGLOSPHERE:

The Philippines has 'transitioned to a tiger economy' : A Philippine official recently said the country no longer deserved to be branded the "sick man of Asia" given its fast economic expansion. DW speaks to economist Rajiv Biswas about what is driving growth in the country. (Deutsche-Welle, 1/29/15)

DW: What do you make of the Philippine official's claims that the country is no longer the "sick man of Asia?"

Rajiv Biswas: The Philippines economy has undergone a remarkable transition from a pussycat into a tiger economy over the last decade. Prior to this, the Philippines had for several decades been performing poorly, with weak growth, low inward investment and a very uncompetitive business environment aggravated by high levels of corruption.

However, the Philippines economy has shown much more rapid growth over the last decade, helped by significant improvements in the fiscal deficit and gradual economic reforms. The Philippines economy now has the capacity for robust long-term economic growth of around 4.5 percent to 5.0 percent per year over the 2016 to 2030 time horizon. This will transform the Philippines economy from its current 280 billion USD economy to a 680 billion USD economy by 2024, with a projected GDP of 1.2 trillion USD by 2030.

IHS forecasts that total GDP per person in the Philippines will rise from around 2,800 USD in 2014 to around 5,800 USD by 2024. This has considerable implications for the size of the Philippines consumer economy. These significant increases in per capita GDP will create one of ASEAN's largest consumer markets of the future, as the middle class rapidly expands over time.

Posted by at January 30, 2015 3:55 PM
  

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