Manila Retail

Asian Cities

1H 2015

 

Economic overview
The Philippine economy posted the second fastest economic growth in Asia last year, beaten only by China. In the fourth quarter of 2014, Philippine GDP rebounded, posting a 6.9% growth supported by the Christmas spending, bringing the overall GDP growth to 6.1% in 2014 according to the National Statistical Coordination Board (NSCB). This is lower than the government’s target of 6.5%-7.5% last year, partly due to decelerated government spending.

However, public spending is expected to rise in 2015 as the government has allocated 5% of the GDP purely for infrastructure projects, giving special attention to much-needed upgrades for land transportation. Private consumption, on the other hand, slowed by a marginal 0.3%, reaching 5.4% in 2014. Domestic demand, which is a vital part of the economy accounting for 68.9% of the total GDP, is likewise expected to increase in 2015, supported by low oil prices, OFW remittances, and the rising middle class from the booming business process outsourcing (BPO) industry.

 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square

+852 2842 4573

 

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