The author argues that Philippine's rebound is in fact sustainable and investors should look deeper than the "legions of cynics." The key points in the argument are as follows:
Positives accumulating -
1. Inflation is falling
2. Country risk premium is falling
3. Economy more resilient to external shocks
4. Govt stability increasing
Investment deterrents easing-
1. Philippines is one of the highest concentrations of minerals in the world, but restrictive regulations that were deterring investments are gradually being removed
2. Major investment in infrastructure has been announced in the new budget
3. Steps being taken by administration to enhance the investment climate - campaign against corruption, increase in BPO growth.
However, challenges remain - weak infrastructure, high utility costs, to name a few result in Philippines ranking not too highly in international rankings. However, with good policy making, these can be overcome. Please click on link below for the full article:
Manu Bhaskaran: Can the Philippines’ rebound be sustained?
Monday, 16 July 2012
Monday, 16 July 2012
© 2012 - The Edge Singapore
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