by: Sarah Joson
Tuesday, November 24, 2015 |
A report created by the Organization for Economic Cooperation and Development (OECD) revealed that the Philippines is the frontrunner as the fastest-growing economy out of five Southeast Asian nations next year.
A 6% growth is anticipated for the Philippines next year, which is higher than the organization’s forecasts for the four other Association of Southeast Asian Nations (ASEAN) members Vietnam (5.9%), Indonesia (5.2%), Malaysia (4.6%), and Thailand (3.1%).
The report called “Economic Outlook for Southeast Asia, China, and India” stated that strong domestic consumption fuelled by remittances has driven the growth of the economy. Moreover, since the country recently improved on its attractiveness as a foreign direct investments (FDI) destination, it is now in a better position compared to its ASEAN counterparts.
For this year, OECD anticipates that the country will grow by 5.9%, next to Vietnam’s 6%, based on the gains in economic reforms, and plans to improve public spending on infrastructure. Growth prospects are an indication of the country’s improved macroeconomic fundamentals. It also reflects their plans to develop infrastructure. However, job creation and the improvement of business environment should be addressed.
Meanwhile, the government is looking to increase infrastructure spending by 5% of gross domestic product (GDP) next year. Some analysts even said it is an “ambitious” move.
OECD’s report noted that China is expected to grow by 6.8% for the year, a new low in recent years. On the other hand, a 7.2% growth is seen for India.
The overall growth of the ASEAN region is pegged at an average of 4.6% in 2015 and by 4.9% in 2016, driven by the Philippines and Vietnam.
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