Gone are the days when the Philippines is referred to as “the sick man of Asia” as the country’s economy is slowly dominating the global growth projections. It is now emerging as one of the fastest growing economies in the world and investors are confident that its transition as a tiger economy is within reach.
Best Business Partner in Asia
“[The Philippines is the]best business partner in Asia with its advantages in terms of human resources and high-skilled Filipino workers, business incentives, overall good governance and the country’s wealth of natural resources, including its tourist attractions, ” thus said Philippine Ambassador to Switzerland Leslie Baja during the Pulse of Asia forum in Zurich, Switzerland last March 31. The said forum aims to convince more Swiss and European capitalists to invest in Southeast Asia.
Touchstone Ventures, a Swiss investment firm, seeks to provide investors with personalized access to direct investment opportunities in emerging market businesses in Southeast Asia. It explored diverse business opportunities in the country during their visit last Nov. 12 to 16.
Most Resilient Emerging Economy
With a value indicator of 0.74, the Philippines topped the list of emerging market economies (EME) with its strong macroeconomic resilience to withstand the pre-global crisis, year 2007, to 2014. It was followed by South Korea, China, Chile, and Thailand, respectively.
According to the essay “Emerging Market Macroeconomic Resilience To External Shocks” (February, 2015) by the US-based non-profit research group Center for Global Development, the Philippines has overcome the global financial pressures during those crucial period as its rating in the resilience indicator jumped 21 notches to the top.
Author Liliana Rojas-Suarez said that a resilient EME is a macroeconomy that is “highly resilient to adverse external shocks if the event does not result in a sharp contraction of economic growth, a severe decline in the rate of growth of real credit and/or the emergence of deep instabilities in the financial sector.”
Second Top Economy
Meanwhile, the Philippines ranked second in the list of the top economies expected to dominate global growth projections in 2015, according to the survey conducted by New York-based data and media company Bloomberg. China holds the top spot, while Kenya, India, and Indonesia placed 3rd, 4th, and 5th respectively. These markets are forecast to grow more than 5% this year and together, they make up 16% of global product.
With these constant economic progression, the Philippines is poised to become the next tiger economy of Asia.
The Outsourced Accountant supports Australian and New Zealand accounting firms by helping them understand and implement outsourcing solutions to help them become more proactive and truly add value to their clients. If you want to know more about outsourcing, call us at 1300 896 522, and download our e-book.