Good prospects for Philippine equities

They are saying that the Philippines is no longer the "sick man of Asia."

http://www.bloomberg.com/news/articles/2015-01-30/move-over-thailand-the-philippines-is-southeast-asia-s-strong-man

Click here for full article

I came across this article saying really nice things about the outlook of the Philippine economy while not so subtly cautioning another.

The article listed a few reasons for saying so including GDP growth, manufacturing growth, exports surge, swelling consumption, and a demographic dividend.

I was surprised about a few things including how population growth can be a boon. This was curiously called a demographic dividend.  Having 31% of the population aged 10-24 years old was described as an advantage and population growth considered a good thing. 

There's a debate ongoing regarding current notions on the impact of population and the need for population control.  There's growing belief in focusing on per capita income rather than simple population control.

Anyhow, what stands out for me is the impact of the Aquino administration.  The significant positive effect of the anti corruption drive is undeniable.  I believe it was the key to the recent growth. But I don't want to overly praise the administration.  It's work was not the single factor that brought about growth but was rather the missing piece.  

So, while we see a rosy outlook now we must remember that the administration will change in 2016.  

Will the Philippines truly be Asia's strong man or will we slip back into our long performed role of the sick man?

The private sector is poised to grow but we'll need the right administration to let it.  

Personally, I'm upbeat and think the Philippines will keep to its growth trajectory.  We'll have a clearer picture next year. 


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