Land Bank of the Philippines-Risk Management Group PresentationPresentation Transcript
2013 PhilippineEconomic Outlook R. Carlo AsuncionLand Bank of the Philippines Risk Management Group 21 February 2013
Introduction• 2012 was a banner year for the Philippine economy.• 6.6% GDP growth for 2012• 2nd to China (7.8%) in terms of economic growth• One of the best performing stock markets in Asia
Where Is The Confidence Coming From?
Sound Macroeconomic Fundamentals
Daang Matuwind? Investment Grade?
Prudent Monetary Policy
Strong External Position
Sound Financial Sector
Regional GDP, % Share in National GDP
Growth Constraints Needed To Be Addressed1. Accelerate infrastructure development (PPP)2. Provide adequate and efficient power supply3. Enhance administrative efficiency (Tuwid Na Daan)
Agriculture Is Priority Sector
Growth Drivers• Agriculture is key.• Public-Private Partnerships (PPP) will be crucial.• Tourism is a growth hub. Quick win if targets are achieved.• Industry development (versus China and other ASEAN)• Governance and beyond 2016!
Some Risks1. Downside Risks – Weak global economic prospects – Sustained stability of the PHP against the USD – Political reform beyond 20162. Upside Risks – Possibility of Investment Grade this 2013 – Favourable view of the Philippines
Thank You!Reference:“Good Governance is Good Economics: AchievingInvestment Grade,” Philippine Economic Briefing, BSP-Investors’ Relations Office, 12 February 2013.