The Philippines experienced a series of unfortunate events in 2013. Apart from political issues, it went through a 7.2-magnitude earthquake and the strongest typhoon to ever make landfall, Haiyan. It spurred doubts amongst economic managers - saying the typhoon aftermath could affect the country’s GDP. International factors such as the conflict in Syria, US Federal Reserve problems, and budget crisis are also causing quite a stir amongst foreign investors in considering emerging markets such as the Philippines.
However, reconstruction efforts for the typhoon aftermath in the Central Philippines and strong consumer spending propelled by remittances and continuous growth of the business process outsourcing (BPO) industry will reinforce the local economy’s growth in 2014.
Harry Liu, President of Summit Securities, said the challenges will soon pass and the first quarter of 2014 will be better for the economy. Other market participants air the same sentiments on the Philippine economy’s fate in general.
Meanwhile, some financial institutions and economists lowered their growth expectations for the country but posted positive long-term projections for economic expansion.