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).