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Philippine Economic Performance July 2015

  • Gross Domestic Growth. The Philippine economy grew by 6.9 percent in the last quarter of 2014, pushing the average full-year growth to 6.1 percent. Growth in the fourth quarter of 2014 appears to be broad-based as all three major productive sectors – the agriculture, industry, and services sectors – have shown positive and robust growth during the period. Most notable is the recovery of the agriculture sector, which significantly grew by 4.8 percent in the fourth quarter of 2014 from the 0.9 percent growth in the same period in 2013. The industry sector grew by 9.2 percent in the fourth quarter, its highest in the last six consecutive quarters since the third quarter of 2013. The services sector also grew by 6.0 percent in the fourth quarter, the same growth for the 2014 full-year average.economic graph
  • Trade / Exports / Imports. Exports grew by 15.5 percent in real terms in the fourth quarter and a full-year expansion of 12.1 percent relative to the previous quarter’s growth of 9.9 percent. Exports of goods increased by 15.9 percent from 6.2 percent in the fourth quarter of 2013 as positive developments in the global manufacturing sector were seen. The faster growth in exports of services to 14.1 percent from a 6.7-percent decline came mainly from the business process outsourcing or BPO sector.
  • Inflation. Year-on-year headline inflation for the whole year of 2014 averaged 4.1 percent, within the Government’s inflation target range of 4.0 percent ± 1.0 percentage point for the year. This was the sixth consecutive year that the average inflation rate has been within the government target. At its meeting last March, the Monetary Board decided to maintain the BSP’s key policy rates at 4.00 percent for the overnight borrowing or reverse repurchase (RRP) facility and 6.00 percent for the overnight lending or repurchase (RP) facility. The Monetary Board’s decision is based on its assessment that the inflation environment continues to be manageable. Latest baseline forecasts indicate that inflation is likely to settle within the lower half of the target range of 3.0 percent ± 1 percentage point for 2015 and 2016.

 

  • Employment. The number of employed Filipinos grew by 2.8 percent to 38.8 million from 37.8 million a year ago, based on the October 2014 round of the Labor Force Survey or LFS. This was accompanied by the decline in the unemployment rate from 6.4 percent to 6.0 percent in the same LFS round.
  • Budget. The government’s budget deficit in 2014 was only 0.6 percent of the country’s gross domestic product (GDP), mostly due to underspending.   The full year fiscal deficit was lower than both the two percent program and the 1.4 percent deficit-to-GDP ratio recorded in 2014.
·         Foreign Direct Investment / Portfolio Investment. Foreign direct investments (FDI) posted a record high of US$6.2 billion in 2014, increasing by 65.9 percent from the US$3.7 billion net inflows in 2013. FDI inflows remained robust, buoyed by strong investors’ confidence in the country’s solid macroeconomic fundamentals. The Philippine Stock Exchange jumped 23% last year, making it one of the world’s 10-best performing markets. The market has grown 280% since 2008. It has climbed 18.2 percent over the past four months and has broken at least 27 all-time highs this year alone.
  • Currency / Reserves. The Philippine Peso averaged 44.4457 in March 2015, from 44.6044 in January this year, and 44.7916 March 2014. The country’s gross international reserves (GIR) stood at US$80.4 billion as of end-March 2015. This level was lower by US$0.4 billion compared to the end-February 2015 GIR of US$80.8 billion. The GIR level can cover 10.5 months’ worth of imports of goods and payments of services and income. It is also equivalent to 4.9 times the country’s short-term external debt based on original maturity and 3.9 times based on residual maturity.

 

  • Remittances. Cash remittances from Overseas Filipinos coursed through banks rose from US$22,984,035 in 2013 to US$24,348,078 in 2014, an increase of 5.93%. Cash remittances from the UK to the Philippines reached US$1,394,706,000 in 2014, up 5.62% from US$1,320,458,000 in 2013.
  • Tourism. The Philippines hosted a total number of 4,833,368 visitors in 2014 (3.25% growth). Of this figure, 133,665 visitors were from the UK (2.77% growth). UK ranks as 10th top market for the Philippines.
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PBBC Business Delegation to Manila 9-13 November 2015

Want to do business in the largest Asian English-speaking country in South East Asia? Then don’t miss the chance to exploit the British Philippine Business Council’s extensive business connections when they visit Manila and Subic Bay (optional) between 9-13 November 2015. We have put together a PAL flights and a hotel package (5 nights) for around £700 (economy return) or £1,500 (business return).   Manila Business Delegation

 The Philippines with an estimated 103 million people is one of the largest markets in SE Asia and one of the largest English-speaking countries in the world. HSBC has forecasted that the Philippines could become the world’s 16th largest economy by 2050. The Philippines is now ranked 59 in the World Economic Forum’s Global Competitiveness Report. It has improved by 25 places in the last 3 years. The economy grew by 5.20% in the first quarter of 2015 over the same quarter of the previous year. GDP annual growth rate in Philippines averaged 5.08% from 2001 to 2015. The UK has excellent and historic trade relations with the Philippines and the UK has also been the largest foreign investor over the last ten years with combined investments close to £10 billion.

 The Philippine British Business Council (PBBC) exists both to create and to add value to the trade, investment and business links between Britain and the Philippines. We do not duplicate the work of existing trade and investment promotion and institutions, but will add a new level of creativity and initiative based on the business acumen, experience and contacts of its members. The PBBC is business-led with its members drawn from senior decision-making levels of companies taking part. It promotes trade between The Philippines and Britain and includes Philippine British co-chairmen in ICT, Agribusiness, Power/Energy, Retail and Tourism sectors although the PBBC Business Delegation in November offers all UK firms the chance to engage with this important and strategic market for the UK. The PBBC will celebrate its 20th Anniversary whilst in the Philippines in November. 

 The PBBC Business Delegation offers UK companies (exporters or potential investors) the chance to gain exposure in the market, research further opportunities and of course enjoy key introductions to senior business contacts utilising our wide range of business and government networks. The programme will include several networking events, briefings at key Government departments and business introductions. There is also the opportunity to add additional meetings utilising the PBBC’s contacts and services offered by the British Chamber of Commerce for the Philippines (BCCP). The Delegation will be led by PBBC’s UK Chairman Nigel Rich CBE. UK firms will meet their own travel and hotel costs and might need to contribute some incidental costs to cover participations at Receptions etc.

 Further Information

Sign up or express interest by contacting Eamonn Staunton, PBBC Philippine Business Delegation Secretary on 0742 464 4268 or by e-mailing your details to Staunton1964@hotmail.com.

 

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Investment Business Conference 18 June 2015

The final programme for the Philippines Investment Business Conference on 18 June 2015 has been announced. the event will be held at Asia House, London from 09.30 to 12.30 followed by a networking lunch.Philippines seal & logo

 

Full details are on the link below:

 

Final Programme – Philippines – Thursday 18 June 2015

 

 

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Business Delegations to London & Manila – advance notice

At a recent meeting of the PBBC in London, two business delegation visits were reported.Business delegation 2015 speaker

Delegation to London 17th – 19th June 2015

A delegation led by Philippines DTI secretary Gregory Domingo will visit London. Details are still being worked on by the Philippines Embassy in London.

Delegation to Manila 10th – 13th November 2015

A delegation led by the PBBC will include the Chairman , Nigel Rich supported by Alistair Fulton, Eamonn Staunton and Martyn Skinner.

UK companies can join this delegation. Any interested UK companies should contact Eamonn Staunton at staunton1964@hotmail.com.

Further details on both these delegations will be published as they become available.

Interested companies can also contact info@philippinebritish.com to register their interest or to ensue that they receive event details.

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