S&P says Philippine economy a 'rare bright spot'

Manila (Philippine Daily Inquirer/ANN) - The economic forecast for many countries these days ranges from shaky to dismal, especially among industrialized countries. Yet, the Philippines and Indonesia stand out as rare examples of emerging Asian economies with positive rating outlooks.

According to a report titled "Two Emerging Asian Economies Stand Out With Positive Outlooks Amid Sobering Economic News Elsewhere," just published on RatingsDirect, Standard & Poor's Ratings Services said that these two countries were among only 10 in the world that have positive rating outlooks, and none were industrialized economies.

Generally, the bond markets are treating the Philippines and Indonesia pretty well. And the cost to insure the two countries' debt using credit default swaps also illustrates the favorable treatment the credit markets are giving the two countries.

Meantime, Southeast Asian countries have reaffirmed plans to integrate their economies by 2015, carrying hopes the move will make the region a key growth leader for the global economy.

At the end of the three-day World Economic Forum for East Asia held in Bangkok Friday, member-countries of the Association of Southeast Nations (Asean) committed to pursue the Asean integration plan as scheduled by 2015.

Under the economic integration plan, their financial systems and capital markets will be interconnected, trade will be easier through the elimination of many tariffs, and freer movement of labor across borders will be allowed.

In a statement released by the World Economic Forum (WEF), Southeast Asian leaders cited the benefits of an integrated region. "Leaders of four Asean countries reaffirmed the 10-member grouping's commitment to form the Asean Economic Community as scheduled in 2015," WEF said in the statement.

WEF said Asean members also raised hopes the group would be joined by other Asian countries in the future.

The economic integration by 2015 is expected to transform Southeast Asia into a major growth force in Asia and the world, together with China and India.

The Philippines is supportive of the region's integration, saying doing so would help accelerate growth of member-economies. The country's economic officials believe the integration will help member-countries pursue the goal of "inclusive" growth.

Economists said that while the Philippines and other emerging Asian countries were cited for their respectable growth rates despite problems hounding advanced Western economies, they continued to suffer from growth that was not inclusive.

"Inclusive" growth is one that actually translates to poverty reduction and does not benefit only the rich. In the Philippines, poverty incidence remains high even as the economy has consistently grown over the years. With a report from Reuters

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • US missile cruiser docks at Subic
    US missile cruiser docks at Subic

    A US Navy missile cruiser has dropped anchor in Subic Bay as part of “routine port call,” amid rising tension in the West Philippine Sea stirred by China’s island building activities and other threatening moves by its forces. The arrival of the Ticonderoga-class missile cruiser USS Shiloh (CG-67) at the Subic Bay Freeport in Olongapo City yesterday was “just a routine port visit for ship replenishment and routine maintenance of shipboard system,” said Philippine Navy Public Affairs Office …

  • Agri, power sectors should brace for El Niño
    Agri, power sectors should brace for El Niño

    The agriculture and power sectors, as well as the general public should brace for a prolonged El Niño phenomenon that could further reduce water supply for electricity and irrigation, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) warned yesterday. Flaviana Hilario, acting deputy administrator for research and development of PAGASA, said the El Niño condition is expected to intensify from weak to moderate by August this year. Anthony Lucero, …

  • China to US: Help cool down Phl on sea row
    China to US: Help cool down Phl on sea row

    The US should help “cool down” the Philippines and realize that its meddling in the West Philippine Sea (South China Sea) dispute would only stir tensions, a Chinese newspaper reported. “Washington should know its meddling in the South China Sea has been destabilizing the region. The US has vowed not to take sides in the territorial dispute, which involves China, the Philippines, Vietnam, Malaysia, Brunei and Taiwan. …

  • No stopping K to 12 despite SC case, protests
    No stopping K to 12 despite SC case, protests

    K to 12 is the fruit of years of comprehensive consultations involving different sectors in education,” Aquino said during the launching of the program at the Philippine International Convention Center (PICC) in Pasay City. Organized by the Department of Education (DepEd), the launch was attended by teachers, students and representatives from different stakeholders supportive of the K to 12 program. It was held two years after the signing of Republic Act 10533, or the Enhanced Basic Education …

  • MNLF pushes review of peace pact with gov’t
    MNLF pushes review of peace pact with gov’t

    The Moro National Liberation Front (MNLF) maintained its bid for completion of the tripartite review of the implementation of the peace agreement with the Philippine government in 1996. The MNLF’s desire to put consensual closure to the tripartite effort was relayed by its leaders to Sayed El-Masry, the special envoy of the Organization of Islamic Cooperation (OIC), during the annual foreign ministers conference in Kuwait last Thursday. The MNLF peace agreement with the government in Sept. 2, …

  • Noy to raise sea dispute issue with Abe
    Noy to raise sea dispute issue with Abe

    President Aquino is expected to raise the West Philippine Sea dispute during his meeting with Japanese Prime Minister Shinzo Abe in Japan next week. However, there is no word yet if the Philippines will specifically ask Tokyo to join calls for China to stop its massive reclamation activities in disputed waters. Aquino will leave for Tokyo on June 2 for a state visit until June 5. …

  • CHED releases wrong data on tuition hike
    CHED releases wrong data on tuition hike

    The Commission on Higher Education (CHED) appears to have released erroneous data on the allowed tuition and other fee increases in Metro Manila for the incoming academic year. On the list of the 51 approved higher education institutions (HEI) allowed to impose hikes, CHED pegged the average increase in tuition at P32.34 per unit and the average increase in other fees at P34.79. However, a Philippine STAR re-computation showed that the actual average approved tuition increases in Metro Manila …

  • Leni Robredo may run for senator
    Leni Robredo may run for senator

    The widow of the late Interior Secretary Jesse Robredo admitted that running for higher office in 2016 had crossed her mind. Camarines Sur Third District Rep. Leni Robredo said she is focused on her re-election, but there is always the possibility that she would seek higher office. “There is always that possibility… because the filing (of certificate of candidacy) is in October yet,” Robredo said in an interview after her speech during the 23rd Girl Scouts of the Philippines Council …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options