Quantcast
Latest Stories

Moody’s upbeat about PH manufacturing sector

Influx of local, foreign investors boost output

By

Moody’s Investors Service is upbeat about manufacturing output in the Philippines, citing nascent growth in the sector resulting from rising investments.

“Rising local and foreign investments, and better manufacturing production are helping to drive output higher, aided by solid local demand from consumers,” Moody’s said in a recently published outlook report for the Asia-Pacific.

Substantiating its favorable sentiment, the international debt rating firm said it expects industrial production in the Philippines to have grown year on year by 8 percent in January (official data are scheduled to be released by the National Statistics Office on March 12).

In the same month last year, growth in the value of industrial production was registered at 2.6 percent.

“The industrial production series is volatile but, looking through the noise, production has been steadily accelerating since around mid-2012,” Moody’s said.

The comments of the credit watchdog are consistent with observations of economists about early signs of an improving manufacturing sector in the Philippines.

While the services sector, led by the rapidly expanding business process outsourcing (BPO) companies, have largely driven growth of the Philippine economy in the last few years, the industrial sector had substantially improved in 2012.

The industrial sector grew by 6.5 percent last year, significantly accelerating from the growth of 2.3 percent in 2011.

The government said growth in industries last year was due to rising investments, which were aided by robust household consumption and the encouraging outlook on the Philippine economy.

The Philippine economy grew by 6.6 percent last year, posting one of the fastest growth rates in Asia during the period.

Given its favorable performance last year—during which advanced economies continued to struggle with serious debt problems—the Philippines has been recognized for being resilient. In 2009, the Philippines was likewise cited for avoiding a recession when most advanced economies contracted.

Economists said, however, that the Philippines continues to face the challenge of making the benefits of a growing economy translate into poverty reduction. So far, they said, the middle class and the rich are the ones mostly reaping the benefits of a growing economy.

For the Philippines to trim the significant poverty incidence in the country, they said, growing investments in the manufacturing sector should be sustained for the medium to long term.

Unlike a growing services sector, economists said, an expanding manufacturing sector is more capable of helping reduce poverty. This is because the manufacturing sector offers employment even to those with relatively lower levels of educational attainment.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , Debt Rating , Investment , manufacturing , Moody's , News

  • Handiong

    “Rising local and foreign investments,…”
    Of course, the naysayers, deniers, gripers, slackers, and whiners, with their heads buried in the sand, will say that there are no investments coming in. 



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Healing priest invites political leaders to join ‘prayer for nation’
  • Tagle: Christ’s resurrection a message of hope to faithful
  • Aquino vows to intensify anti-corruption drive further
  • Unease in Vatican over cardinal’s luxury flat—report
  • Nepal calls off search for missing guides on Everest—official
  • Sports

  • Rain or Shine grabs No.4, sends Ginebra to 8th
  • Red-hot Alaska rips injury-depleted San Mig Coffee
  • Pacquiao courtesy call to Aquino set for Monday
  • Nick Calathes suspension a reminder of supplement risk
  • Teague scores 28 as Hawks soar past Pacers in Game 1
  • Lifestyle

  • Angono petroglyphs in danger of disappearing
  • Britain’s baby Prince George visits Australian zoo
  • Noli Yamsuan, Cardinal Sin’s ‘official’ photographer: ‘I could smell the aftershave lotion of the Pope’
  • Simplifying and lightening life
  • Where to go for Easter night-out
  • Entertainment

  • Show-biz celebrities’ other choices of summer getaway
  • Why ‘Noah’ can’t dock his ark at Philippine theaters
  • Acclaimed artist goes wild while on holiday
  • Believing in this mermaid
  • Missing Xian
  • Business

  • Supper power
  • Condo unit sales boosted Shang Properties earnings
  • ERC mulls over WESM price cap for May, June
  • Whatever happened to the ubiquitous pagers?
  • Huge 2013 net profits seen difficult to surpass in 2014
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Epiphany
  • Unpaid creditor vs distressed debtor
  • Moving on
  • From culinary desert to paradise
  • Response to China: ‘Usjaphil’
  • Global Nation

  • Japan presents $57-B ‘dream plan’ to solve Metro congestion
  • Tim Tebow’s charity hospital in Davao seen to open in 7 months
  • OFW died of Mers-CoV in Saudi Arabia, says family
  • Aquino, Obama to tackle US pivot to Asia during state visit
  • Asia seeks Obama’s assurance in territorial spats
  • Marketplace