MANILA: Philippines economy has grown by 6.1% in 2014 after expanding 7.2 percent in 2013. This is due to lower oil prices which would keep inflation in check and make local industries competitive.
Speaking at the 18th Outstanding Filipino Retailers and Shopping Centers of the Year Awards Night, Trade Secretary Gregory Domingo said that while the economy is expected to grow at about seven percent this year, it could grow at an even faster pace, if the low oil price environment would persist. “This year, the expectation is it (economic growth) will be about seven percent. But if oil prices remain at below $60 a barrel, I think it has a fair shot of exceeding eight percent,” he said. The Philippines ranked second, next to China, as one of the top 20 countries projected to dominate global growth in 2015, according to economists’ survey.
These countries, which together make up about 16 percent of global domestic product, are at the top of global growth projections over the next two years, the article said. The Philippines increased its gross domestic product (GDP) by 6.9 percent in the fourth quarter of 2014 with an average growth rate of 6.3 percent from 2010 to 2013. Countries from Asia and Africa dominated the list of top 20 markets in 2015 namely Nigeria, Malaysia, Peru, Thailand, UAE, Kazakhstan, Colombia, Saudi Arabia,Taiwan, Turkey, South Korea, Poland, Mexico, Ireland, Singapore. China maintained the top spot as the fastest growing market with 7.3 percent growth in the fourth quarter of 2014, but its growth is expected to slow to seven percent in 2015.
The United States and United Kingdom are expected to grow 3.1 percent and 2.6 percent in 2015, respectively, while Africa’s largest economy, Nigeria, is estimated to reach a 4.9 percent growth this year, Bloomberg reported. The survey included 57 countries each with 10 or more responses in the Bloomberg surveys. Domingo said that the expansion of the Philippine economy this year is expected to be supported by the election-related spending which should start by the second semester.
The continued growth of the business process outsourcing sector which employs young individuals with disposable income, would also drive higher economic growth, as well as the rising gross domestic product (GDP) per capita. The country’s GDP per capita is currently at the $3,000 level, the take-off point in which a tremendous increase in consumer spending is usually seen. Domingo said retailers could take advantage of this by “providing consumers the best experience possible.” Investments in manufacturing which will create more jobs, he added, would likewise help the country achieve higher economic growth this year.
