Philippine Economy
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PHILIPPINES GDP ANNUAL GROWTH RATE

The Gross Domestic Product (GDP) in Philippines expanded 6.80 percent in the fourth quarter of 2012 over the same quarter of the previous year. GDP Annual Growth Rate in Philippines is reported by the The National Statistical Coordination Board. Historically, from 2001 until 2012, Philippines GDP Annual Growth Rate averaged 4.82 Percent reaching an all time high of 8.90 Percent in June of 2010 and a record low of 0.50 Percent in September of 2009. Services are the biggest sector of the Filipino economy and account for 57 percent of total GDP. Within services the most important segments are: trade, repair of motor vehicles and household goods (17 percent of total GDP); real estate, renting and business activities (11 percent); transport, storage and communication (8 percent); financial services (7 percent) and public administration, defense and social security (4 percent). Industry accounts for 31 percent of GDP. Within industry, manufacturing (22 percent of total GDP) and construction (5 percent) are the most important. Agriculture contributes the remaining 12 percent of GDP. This page includes a chart with historical data for Philippines GDP Annual Growth Rate.

In the fourth quarter of 2012, the GDP grew by 6.8 percent year-over-year and 1.5 percent quarter-over-quarter. The increase was fuelled by the robust performance of the Services sector led by Trade and Real Estate, Renting & Business Activities as well as the substantial improvements of Manufacturing and Construction.
Philippines Monetary Policy Unchanged in April
​The Monetary Board of Philippines decided to maintain the key interest rate fixed at 3.5 percent, as inflation expectations remain in the Central Bank's target.
Statement by the Bankgo Sentral NG Pilipinas:

The Monetary Board decided to maintain the BSP's key policy interest rates at 3.50 percent for the overnight borrowing or reverse repurchase (RRP) facility and 5.50 percent for the overnight lending or repurchase (RP) facility. The reserve requirement ratios were kept steady as well. Meanwhile, the Monetary Board further reduced the interest rates on the Special Deposit Account (SDA) facility by 50 basis points to 2.0 percent across all tenors, effective immediately.

The Monetary Board’s decision to maintain the policy interest rates at their current levels is based on its assessment that the inflation environment is likely to remain manageable over the policy horizon, with expectations firmly anchored within the inflation target band. The projected inflation path continues to track the lower half of the 4 ± 1 percent target range for 2013 and 2014. Moreover, the risks to the inflation outlook remain evenly balanced. Uncertainty over the strength of the global economy and the relative firmness of the peso are the key downside risks to the broad outlook for prices. However, power rate adjustments and the possibility of a sustained surge in liquidity owing to strong capital inflows could push inflation higher as well.
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At the same time, the Monetary Board noted that the benign inflation environment and robust domestic growth prospects provided scope for further enhancing the efficiency of the operations for absorbing liquidity through the SDA facility. The adjustment is in line with the BSP’s continuing efforts to fine-tune its monetary policy instruments and thereby gain greater flexibility in conducting monetary operations, and also to ensure adequate liquidity for economic activity.
Going forward, the BSP will continue to monitor emerging price and output conditions to ensure that the monetary policy stance remains consistent with maintaining stable prices while supporting economic growth. The BSP also aims to deploy macroprudential measures as needed to pre-emptively address any potential misalignment in asset prices.
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Interest Rate |

The interest rate shown on this page refers to the central bank benchmark interest rate. Usually, the central bank benchmark interest rate is the overnight rate at which central banks make loans to the commercial banks under their jurisdiction. Moving the benchmark interest rate, the central bank is able to make an impact on interest rates of commercial banks, inflation level of the country and national currency exchange rate. Reduction of interest rates should bring increase in business activity, a rise in inflation rate and weakening of national currency. In case of increase in interest rates the level of business activity is likely to drop, inflation declines and national currency strengthens.
GDP Annual Growth Rate |
The annual growth rate in Gross Domestic Product measures the increase in value of the goods and services produced by an economy over the period of a year. Therefore, unlike the commonly used quarterly GDP growth rate the annual GDP growth rate takes into account a full year of economic activity, thus avoiding the need to make any type of seasonal adjustment.
source: Trading Economics
The Economic Sweet Spot​
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In The Stages of Economic Growth: A Non-Communist Manifesto, W.W. Rostow breaks down an economies development into five stages:
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- Traditional Society​
- Preconditions for Take-Off​
- The Take-Off
- The Drive to Maturity
- The Age of High Mass Consumption
The definitions are self-explanatory. For example, the United States is in the mass consumption stage. China is driving to maturity. Most of Africa has been mired in traditional societies for centuries.
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But the Philippines is in the sweet spot. It is at the critical point where fortunes can and will be made: the take-off stage.
Growth has been so strong that the Philippines is quickly becoming one of the few remaining hyper-growth economies in the world. Its GDP grew 7.1% last year. The credit crisis which has mired the global economy was barely a speed bump on its growth trajectory!
The Fuel for the Take-Off​
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Every society has gone through these same stages. Dozens have made it through them, imploded, and gone through them again. Each time they've gone through them, there has always been fuel for their take-off stages. That fuel is often natural resources.
Think about it like this: Every great society has been founded in an area abundant with natural resources. Whether it was water and fertile soil thousands of years ago, or timber, coal or oil, and minerals in the last few hundred years, natural resources were always essential elements. But today, in a much wealthier world, many factors are hindering natural resource production.
The United States and the rest of the mass-consumption societies are increasingly turning away from production and have become more focused on other things.
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For example California. It still has massive reserves of oil both onshore and offshore however those resources cannot be tapped... not for a lack of technology, capability, they are off limits merely because the government and environmentalists do not want them to be developed.
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Russia is another example. There are tremendous reserves of oil, natural gas, minerals, and timber. They are a huge part of the Russian economy. However, they remain largely unexplored due to widespread corruption and poor property rights.
How soon will it be until BP or other oil majors place billions of dollars into another Russian energy project after the last one was taken back from them by bureaucratic fiat?
The Philippines is doing the exact opposite. And its reaping the rewards.
The best example: The country recently changed its mining law to make it easier for foreign companies to come in and explore, develop, and mine the countrys vast resource base of copper, gold, oil, and other commodities. Where else in the world could this have happened and so quickly?
​Winning Big in the Philippines​
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The Philippines is just one example of the many countries that are reaching the point where they make extraordinary leaps and bounds. The top-performing stock market of any developing country since the credit crisis has not been the headline-makers like China and Brazil...
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The big winner is Colombia, a country better known for the drug trade than exploiting its vast resources of copper, gold, and timber. Meanwhile, the economic malaise in the West just seems to be becoming more stagnant. Europe is perpetually on the verge of collapse. The U.S. has been avoiding making any sensible economic policy decisions since the credit crisis started and the next round of fixes will be more borrowing, spending, and printing... the results of which will surely be the same and only bring further problems.
But in the end if youre willing to look beyond your borders and stereotypes youll find a world of growing wealth and populations looking to get their piece of the global economic pie.
Manila Update:
The Philippine economy has continued to do well during the first half of 2013 and the outlook is for more of the same during the second half of the year and beyond. The stock market in Manila which has been one of the strongest performing indices in the world over the last few years has recently seen a significant correction. US policy concerning interest rates and uncertainty over the immediate future has fuelled a deterioration of the US economy, this knock on effect has led to some losses in the Philippine markets. However the fundamentals still remain positive and the signs are already there for improvement.
This current correction we believe represents a buying opportunity for the medium/long term investor as the Philippine economy looks well placed to carry on growing at a significant pace for some time to come. The property market continues to do well and drive the economy forward with the Manila skyline full of new construction. One of the main competitive edges that the market holds is very strong yields with numbers in the 7-10 percent region. Starwealth [SCS] continues to promote properties in the central business districts of Manila where both this demand to purchase and rent remains strong.
SCS lists numerous properties on our website plus we also highlight properties we feel represent exceptional value for the International property investor.
We have recently updated our website and added the new ‘introducer section’. This section enables people in positions of influence to refer clients to us, and benefit financially. An example of this could be someone working in HR in a school, who is often asked by new arrivals about renting and finances. It could also be a lawyer who may not be able to provide ‘International Will Writing’ for clients or may have clients who want ‘independent international financial advise’.
SCS operate a ‘introducer section’, which allows such people to refer business to us and be rewarded for these introductions. The introducer can either collect the financial benefit or we can pay this fee to a charity of their choice. CLICK HERE FOR INERNATIONAL UPDATE