Philippines economic indicators stay strong!

The latest economic performance figures further encourage investors in Philippine property.

The economy of the Philippines expanded by 6.1% in 2014, fueled by sustained increases in private consumption, higher fixed investment, and recovery in exports. The pace of growth decelerated by almost 1 percentage point from the average of the previous 2 years, largely on a slowdown in government expenditure.

Private consumption generated more than 60% of the growth in gross domestic product (GDP) last year. Consumer spending grew by 5.4%, benefitting from a 2.8% rise in employment, modest inflation, and higher remittances from overseas Filipinos, which reached $27.0 billion after climbing in 2014 by 6.3%, or by 10.9% in Philippine peso terms.

Strong GDP growth is projected for 2015 and 2016 based on buoyant private consumption, a solid outlook for investment and exports, and recovery in government expenditure. GDP is projected to increase by 6.4% in 2015 and 6.3% in 2016.

Factors that powered private consumption in 2014 – growth in employment, modest inflation, and higher inflows of remittances – are projected to continue through the forecast period.

With Moody’s and Fitch both indicating increasing confidence amongst the international credit rating agencies by moving the Philippines into a ‘positive’ outlook this will further bolster investor confidence.