Philippines growth can top 8% – Domingo Survey ranks Phl 2nd to China in 2015

MANILA, Philippines - The Philippine economy could grow faster than eight percent this year if oil prices will remain low, a cabinet official said.   

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.   

This, as lower oil prices would keep inflation in check and make local  industries competitive.   

The economy grew 6.1 percent last year, after expanding 7.2  percent in 2013.   

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.    

A Bloomberg survey of economists cited China, the Philippines, Kenya, India and Indonesia as markets that are forecast to grow more than five percent in 2015.

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.   

Domingo projects an eight to 10 percent growth for the  manufacturing sector this year amid increasing interest from foreign  firms to set up facilities here.  - With Charmie Joy Pagulong