Emerging economies are dominating economic growth forecasts, but the Philippines is being hailed as one particular "bright spot" to watch, as cited in the New York Times this week.
According to data released last week, the Philippine economy grew by 5.9 per cent in the second quarter, above speculators’ estimates but below the first quarter performance of 6.4 per cent, which outpaced all other countries in the region, except China.
So what’s changed within a country that has previously faced major socio-economic challenges? There are a number of factors that are driving positive attention in its direction, according the New York Times.
Firstly, its contribution of $1.0 billion to the International Monetary Fund in June this year instilled some confidence - As while many struggling European countries face mounting debts, the Philippines paid back the last of its IMF loans back in 2006. In view of this prospective financial stability and of Standard & Poor’s recent upgrading of the country’s debt rating to just below investment grade, investors could soon be scoping out money-making opportunities. This is supported by recent Philippines Stock Exchange performance outpacing benchmark indices in Malaysia and Indonesia, and its main index reaching 19 record highs since the start of 2012.