Following 2Q results, more good news adds weight to belief Philippines is Asia’s budding Miracle Economy.
Manila, PHILIPPINES, Aug 4, 2014 – Following the release of Government figures that the Philippine economy had expanded by 6.4% in the 2nd Quarter of 2014, the Philippine economy continued to garner praise, earning yet another credit rating upgrade from speculative (BB+) to investment grade (BBB-), this time from South Korean based NICE Ratings.
NICE (National Information and Credit Evaluation) Agency Inc. stressed a positive outlook with the likelihood of another credit ratings upgrade in the short term, stating,
“The rating upgrade reflects improved fiscal profile and growth potential, robust stability in the financial market and the external sector, and the government’s continuing efforts to improve governance and infrastructure”
Key factors in this upgrade included the strong 7.2% growth last year, although they projected a slowdown to 6% later this year, which they attributed to a normalization. Underlying momentum continues to remain strong, though. NICE also pointed to the resilience the economy showed as foreign investors pulled out of emerging markets in May of last year. The five month net FDI inflow is 34% up this year compared to that same period. This is the 18th credit rating upgrade since the Philippine economy received its first investment grade rating from Fitch in March, 2013.
Yesterday also marked the release of the World Economic Forum’s (WEF) Global Competitiveness Index for 2014-2015. The Philippines was ranked 52nd out of 144 economies, up 7 places from last year, and 33 places since 2010, the fastest rising economy in the index.
With all 12 pillars measured trending upwards, the report pointed to the work of the Aquino administration as key to this jump in competitiveness. “The results suggest that the reforms of the past four years have bolstered the country’s economic fundamentals,” and that improvements, particularly in institutional governance, and ethics and corruption, were, “truly remarkable”.