If you have been thinking of retiring and moving to a warmer climate with a lower cost of living, it may be comforting to know that the Philippines economy is emerging. Actually, it is Booming! A move now (or in the near future) could be the just the right time for many foreigners who might be considering retirement abroad. The Philippines continues to offer an overall lower cost of living to those that choose to live there. With the global markets and many economies still struggling according to some reports, and if one is already planning to locate abroad, there is no better time to choose to settle in an emerging market.
(Note: Since the original posting of this article, the Philippines economy continues to expand at a good pace. At the time of this update (4/2019), we have now been living in the Philippines for nearly 6 years, while also spending some time on the island of Guam in the Western Pacific.)
Philippines is ‘Asia’s rising star’, says global think tank
Reuters/Reuters – Fitch Ratings raised the Philippines’ credit rating to investment …more grade, a first for the Southeast Asian nation, in a move expected to boost investment and lift the country’s long-term growth potential.
The Philippines has been hailed as “Asia’s rising star” by a global think tank, as it noted that it expects the country to grow faster than most of the world this year and in 2014.Southeast Asian leaders on Thursday called for urgent talks with China to ensure that increasingly tense territorial disputes over the South China Sea did not escalate into violence.Stellar economic expansion made the Philippines “among the brightest parts of a generally gloomy global picture,” Moody’s Analytics said in a report released Wednesday. The country’s gross domestic product topped expectations by growing 6.6 percent in 2012, a result Moody’s Analytics said “looks sustainable, as risks are low and most sectors of the economy are growing solidly.”
“We expect GDP growth to remain in the 6.5 to 7-percent range in 2013 and 2014, making the Philippines one of the world’s fastest-growing economies,” the report noted. The forecasts hue to the government target of 6-7 percent in 2013 and 6.5-7.5 percent next year.
Moody’s Analytics is a sister company of global debt watcher Moody’s Investor Service, which places the Philippines a notch below investment grade with a Ba1 rating. The Philippines last month bagged its first-ever investment grade in history from credit watchdog Fitch Ratings, which also lauded growth amid a global slowdown.
Moody’s Analytics linked the Philippine’s performance to “good governance” which it said is “far and away the most important driver of growth in emerging markets.” It also lauded President Benigno Aquino III for implementing much-needed reforms and for continuing those initiated during the Arroyo administration.
“The government’s 2011-2016 development plan provides a five-year blueprint for growth and development, providing transparency, predictability and accountability,” the report said.
“The crackdown on corruption and encouragement of local and foreign investments, in particular, have worked well,” it added.
Operational risks have however been cited in terms of private investment, with Moody’s Analytics underlining “complicated and changeable” regulations and taxes.
It also noted the need to “ease restrictions on foreign ownership and streamline rules for starting businesses, paying taxes and dealing with workers” in order to attract more foreign capital.
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