HSBC still optimistic on RP growth prospects

Global financial giant HSBC remains optimistic on growth prospects in the Philippine market, a top bank executive said.

HSBC Philippines chief executive officer Mark Watkinson said the country’s economic growth actually surpassed most economies in Asia but warned that the outlook for the global economy is bleak.

The country’s gross domestic product in the first semester grew just 4.6 percent after an impressive 7.3 percent expansion for the whole of 2007. The first half GDP was lower than the 5.5-percent originally targeted by the National Government.

The second quarter GDP also grew 4.6 percent, lower by 3.7 percentage points than the growth posted in the same period last year.  

But the GDP growth slowdown was also exhibited in other Asian nations.

Singapore grew just 2.1 percent in the second quarter from 9.1 percent in the same period last year. Hong Kong posted a 4.2-percent growth from 6.2 percent in the same quarter last year. South Korea, Thailand and Indonesia registered 4.8 percent, 5.3 percent and 6.4 percent, respectively.

Economic growth across the region was principally dragged down by high inflation and slower growth among advanced economies, which hurt consumer demand.

Nonetheless, Watkinson said that remittances from OFWs have been outpacing that of Mexico, which is the leading country gaining from remittances.

It has been growing between 13-14 percent and may end the year at another record level of over $15 billion.

But the HSBC chief executive said other than exports, the country continues to grow due to domestic consumption, mainly fueled by stronger remittances.

“In fact, the Philippines is just a few hours away from China, which is one of the world’s strongest economies. Philippine exports can only benefit from the proximity and the booming economy,” he added.

HSBC has a total of 24 branches in the Philippines 21 of which are located in the National Capital Region, two in Cebu and one in Davao.

HSBC is also operating two call centers, which employs over 7,000. One is fully operational in Alabang, while the Quezon City center will be formally inaugurated this month. — Ted Torres