In ’13, PH growth may be second to China, says think tank

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Among emerging economies in Asia, the Philippines will continue to trail China in terms of economic growth in 2013, according to a think tank based in Washington, DC.

Similar to a forecast it released in 2012, the c said in a new global report that Philippine growth would remain second only to that of China next year.

Also, the IIF said that in three years to 2014, yearly domestic growth of the Philippines would be above 6 percent.

The think tank said that the country’s gross domestic product would follow through with a growth rate of 6.8 percent next year after the latest forecast of 6.5 percent for 2012.

These are upgrades of IIF’s previous forecasts of 5.7 percent this year and 6.5 percent in 2013.

In 2014, the IIF predicts that the Philippine economy will grow slower at 6.2 percent, to be overtaken by India and Indonesia for second and third place after China.

“The Philippines stands out for its strong growth this year,” the IIF said. “Real GDP was 7.1 percent greater in the third quarter than a year earlier—up from 6.2 percent in the first half, and 3.9 percent for 2011.”

Also, the IIF observed that exports of electronics products—which “sharply depressed” total Philippine exports in late 2011—recovered early this year.

Latest data from the National Statistics Office showed that exports grew by 6.1 percent year-on-year in October, while electronics shipments was almost flat at 0.3 percent.

“The reduction in the budget deficit gave the government some fiscal headroom this year to stimulate domestic demand, while consumption continued to be buoyed by inflows from workers abroad,” the IIF said further.

The think tank also noted that remittances reached $17.3 billion in the first nine months of 2012, which was 5.7 percent higher year-on-year.

Regarding the peso, IIF expected it to trade at 40.90 against the US dollar by year-end, strengthening further to 40.80:$1 in 2013.

The local currency will be much stronger in 2014 when it is expected to trade at a round 40 against the greenback.

But, if the 2007 average exchange rate is regarded as 100, the peso is continually weakening to an equivalent of 107.7 in 2012, 111.4 in 2013 and 114.1 in 2014.

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  • valsore

    Pinoy news have penchant for patting yourself in the back.

  • http://twitter.com/CrocLolong CrocLolong

    BAKIT GANON  WHY  TALAGA  MAYAMAN NA BANSANATIN      BAKIT ANAK NI KUMPAREKOY  WLANG MAKUHA NA TRABAHOKAHIT NAG ARAL PA SAKOLEHIYO       TOTOO MAYAMAN NATAYO   PILIPINAS              MAYAMANNA  DAMI DOMESTICHELPER SA ITAALY  HONGKONG  SINGAPORE            MAYAMAN NA PILIPINAS   BAKA MAYABANG  DAMI PULUBI KAHITSA QUIAOPO

    • Nagagalitna

      Pards indi ibig sabihin dahil maganda ang figure sa balita ng bansa natin ay giginhawa na ang buhay ng kapitbahay mo…
      Ang pagkakaroon ng maayos na buhay ay hindi nagdedepende sa sinasabi ng Govt natin kundi kanya kanyang diskarte kon paano makaraos.
      Dapat ugaliin ng Pinoy na wag tumingala doon sa balita ng maayos ang bansa natin kasi kahit mag 20 % pa ang growth ng Pinas ay hindi directly tatama sa kapitbahay mo ang yaman ng bansa.
      Yon lng po…. :-)

  • iping2sison

    The PH can sustain and even surpass expected growth in 2013.

  • asdafaa qwesda

    Unfortunately Binay is expected to be the next president. No businessman in his right mind will invest in a job generating factory that will have an ROI of 10-20years no matter how well Aquino does.

    • http://profile.yahoo.com/3VXUWOGAA2TGEISTZWRNVGJVZ4 nrcarcht

      So we should elect a president that has a technical know how about business and most importantly not a corrupt and will render sacrifices to save the country from plunging to the bottom in the Asean countries.

  • Pablo Juan

    Salamat naman.. sana hindi madiskaril by the next president.. tatlong taon na lang!!! Hay naku!!!

  • romjov2009

    the philippines should promote foreign direct investment to sustain development.,its a long time solution to poverty giving jobs to filipinos unlike portfolio investment wherein they ( investors) could withdraw their money from stock market trading anytime

  • http://pulse.yahoo.com/_VL4O6U5XQJS2V6O5RYE3FDYV5I JX

    Any country can grow rapidly one year or even five, but Philippines can sustain that growth, as China has, by investing and pushing people to use railways.   Why?  Car and Oil imports will kill off any growth if you let people do as they please, learn from Brazil, India, and nearly every country, only China is producing enough rail to beat down oil, which is why the party never stopped there.

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