Standard and Poor’s (S&P), an American financial services company, named the Philippines as the top economic leader in Southeast Asia. Released just this Monday, the organization cited the country’s continued economic growth as the primary reason for the accolade. It has even surpassed Indonesia’s upward economic position.
According to Paul Gruenwald, S&P’s Asia-Pacific chief economist, the Philippines’ economic performance has been consistent, resulting to the gradual overtaking of Indonesia in the ASEAN growth leadership role. He had also foreseen the country’s gross domestic product or GDP to improve, citing 7 percent for 2013, averaging between 6 to 6.5 in 2014 and 2015.
A reason for this change in economic leadership role is in the difficulty in which Indonesia has been experiencing in terms of financing its account deficit, despite the thriving growth momentum.
The reports also perceived the Philippines’ economic growth at 6.9 percent this year, which is remarkably faster compared to other ASEAN economies. S&P is eyeing that the country will outdo China’s 7.3 percent growth. In Indonesia’s case, the organization said the country’s GDP is expected to increase to 6.1 percent, Vietnam at 5.3 percent, and Malaysia at 5.3 percent.
The economist observed that the economies they cover have continuously been exceeding economic expectations, as their focus lies mainly on domestic growth, instead of the Newly Industrialized Economies. Moreover, economic boost is more noticeable when global growth is sluggish.
In 2015, however, S&P anticipated that ASEAN’s growth as a whole will be stable at 5.5 percent.