Reading Time: minutes
Experts are positive about the country's growth in 2012 amidst last year's low economic performance. For the last three quarters, the National Statistical Coordination Board's (NSCB) Leading Economic Indicator index has suggested the continuity of market development which is expected to reach until the first quarter of 2012. The data shows that the newest analysis for 2012-Q1 was 0.238 which is actually 10 times greater than the 0.023 reading in 2011-Q2. The fast development reflected in Philippines' economic activity and the high probability of lower inflation provide room for monetary policy to ease further what was established by the latest Meralco electricity sales in December. Moreover, incentives to ensure consumer spending brought about by the Overseas Filipino Workers remittances are likely to stay robust.
Equally during last year's fourth quarter and including the full year of 2011, the Philippine economy expanded by 3.7%. Government was under-spending its budget and distribution of demand was weak. The improvements in the services sector sustained to deliver the motivation for growth in the economy which is being reinforced by the factors below:
Accordingly, in the services sector the highest beneficiary was the Real Estate & Business Activities which posted a 9.2% growth. The data reflects the confidence shown by the investors in the Philippine property market and the sustained development in the Business Process Outsourcing (BPO) industry. The total counting on substantial exchange improvements and augmented demand for real estate loans includes Other Services (+7.9%) and Financial Intermediaries (+6.8%).
Sustained by investors' assurance in comprehensive local macro and micro data in the Philippines, the PSEi (main stock index) still shows unparalleled performance. Recorded in January 24, 2012, the current all-time high is at 4,756.78. Even with some economic woes coming from 2011 (Euro-zone debt crisis and fragile US economy as well the slowdown in the global economy) the Philippine market stayed resilient, touching onward this year with a vision on Philippine impartiality in the market to trade higher on the following issues:
- buoyancy in economic growth outlook
- predictions of a credit upgrade
- vigorous corporate data
- robust foreign fund influxes