Focus on the Philippines

摘要

The stand-out performer among ASEAN economies is the Philippines. Once viewed as a regional laggard, the economy last year grew by 7.2 percent on the back of rising exports, an increase in consumer spending and higher manufacturing output. This year, the economy is likely to slow to around a still-solid 6.4 percent. In large part this reflects the impact of Typhoon Haiyan, the deadliest Philip- pine typhoon on record. The massive storm struck vast areas of the country last November, killing more than 6,000 people. Other factors adversely affecting the economy this year include slower government spending and a tightening of monetary policy. Despite the challenging environment, most economists remain upbeat-with GDP forecasts predicting a 6.7 percent expansion in 2015. "This projected growth remains one of the fastest in the East Asia region, second only to China among the major economies," says World Bank country director Motoo Konishi. Inflation is under control at less than 5 percent. Meanwhile the country has managed to lower its debt-to-GDP ratio to 49.2 percent in 2013 from 71 percent in 2004. As a result, the government has been able to double social services spending over the past four years.