Arian Mowat, Chief Emerging Market and Asian Equity Strategist of JP Morgan Chase & Co., believes that more foreign investors will continue to spend in the Philippines this year, unless the economic environment changes. He said that low interest rate, stable political environment and inflation rate, and sustainable foreign exchange inflows from remittances and business process outsourcing (BPO) are some of the factors that make the Philippines competitive.
JP Morgan predicts a four-percent increase in the country’s gross domestic product (GDP). The inflation rate is likewise expected to be at four percent by the end of 2012.
Gilbert Lopez, the Philippines equity strategist of JP Morgan, anticipates a 10 to 12 percent growth rate for this year’s revenues, citing banks and conglomerates as sound choices for investments. The Bank of the Philippine Islands, Metrobank, Security Bank, Ayala Corp., and Metro Pacific are likely to become the largest gainers.
Bangko Sentral Governor Amando Tetangco Jr. said capital funds were allotted to government securities and local stocks last year. These led to positive effects to the market’s liquidity and funding. Meanwhile, Tetangco noted that sectors should not be comfortable with the country’s economic standing and large number of investors, saying it is important to be prepared in case the business environment changes.
He added that regardless of the economic issues in Europe, remittances from overseas Filipino workers may reach $21 billion this year.