International agencies bullish on RP

International agencies bullish on RP

International economic forecasting agencies are unanimous in predicting a sustained growth for the Philippines this year.

With its estimated 6 percent economic growth last year, the UN World Economic and Social Survey says the country has closed in on the performance of exploding Asian economies and is set to join the ranks of the world's fastest growing countries. The Philippines was one of 15 developing countries identified in the report with the highest economic output in 1995.

In a separate report, the Organization for Economic Cooperation and Development predicts the Philippines is set to mark another productive year, with growth targeted at 7 percent. While the dynamic Asian economies, which include Hong Kong, Malaysia, Singapore and Thailand, powered Asian growth at about 7.8 percent last year, this is projected to cool down to an average of 6.7 percent this year. World economic growth is expected to be some 3.2 percent as a result of the performance of industrial countries, which account for three-fourths of world output.

The Asian Economic Research of Credit Lyonnais Securities foresees that the Philippines may join the tiger league in the next couple of years. It says the country's political and economic environment has improved in the last five years, setting the tone for rising investment inflows. Exports are performing well and could reach US$20.5 billion this year.

International Monetary Fund resident representative David Nellor, credits the country's strong economic growth to sound macroeconomic policies. All economic indicators, such as foreign and portfolio investments, foreign exchange trading volumes and merchandise trade, indicate that the Philippine economy has come in step with development in the global economy.

All Asia Capital and Trust Corporation, the country's leading investment institution, says that the economic growth will continue this year, based on industrial performance. Industries such as mining and quarrying will set the pace in terms of growth. Agriculture is expected to recover in the next two years and substantially contribute to the growth. Manufacturing will sustain its pace, rising to 8.5 percent in 1996 and 7 percent in 1997.

Jones Lang Wooton, Britain's largest and oldest property firm, attributed growing foreign investor interest to the country's liberalization program. It cited three factors as the main triggers for high investor interest: current stable government, regulatory changes and a revised perception of opportunities.

According to a survey conducted by the Economic Intelligence Unit, an international organization specializing in economic research analysis, The Philippines landed at the top of a list of 16 Asia-Pacific countries considered "most attractive" to foreign investors. The unit ranked the Philippines as "the number one country of highest interest to investors in Asia in the coming years."

The results of the survey indicated which factors most attracted foreign investors to the Philippines: an educated and skilled labor force, English language proficiency, and the country's long-term strategic importance.

Meanwhile, three credit rating agencies upgraded the credit ratings of the Philippines. Japan Credit Rating Agency Ltd raised its rating from a below investment grade or double B to triple B minus. An "investment grade" rating signifies sufficient protection from the risk of default and is the minimum required by banks and insurance authorities for prudent investment.

Earlier, Moody's Investment Service upgraded the country's long-term foreign currency bond rating from Ba3 to Ba2, while Standard and Poor's Rating Group assigned an equivalent BB from BB (minus).