With a 6-percent GDP growth in 2016 and 2017, the Philippines is expected to outperform its neighbours, according to Moody’s Investor Service.
A recent Moody’s report showed that the GDP expansion of major export-oriented ASEAN economies—Singapore, Malaysia and Thailand—will remain weaker than domestic demand-driven countries like the Philippines and Indonesia whose domestic demands will provide the main engine of growth.
On a scale of macroeconomic profiles ranging from “Very Weak-“ to “Very Strong+,” the report assessed the Philippines as “Moderate+,” and noted that the country “remains among the fastest growing major economies in the Asia-Pacific region.”
In addition, it lauded the stability of the country’s economy, saying that it is expected to withstand external shocks better than its neighbouring countries.
Capital Economics, a London-based economic research consultancy is optimistic that the country’s economic growth will remain strong over the coming years, despite the change in political leadership this year.
They also took note of the Philippines’ demographic advantage. Average age of Filipinos is at 23.5 years, and its young population which will keep the economy on the robust-growth trajectory.
The Philippine government expects a 6.8 to 7.8 percent growth in 2016, an increase from last year’s 5.8 percent. The World Bank, on the other hand, expects a 6.4 percent growth forecast for the country.
World Bank country director Mara Warwick explained that the Philippines continues its strides on economic stability, transparency, infrastructure, and services for the poor.