PHL among world's fastest growing economy (Philippines News Agency)

The Philippines is among the top five countries in the world with fastest economic growth both in medium and long term, according to United States-based think tank IHS Global Insight.

In its IHS Economics Global Executive Summary published this month, IHS forecasts that the Philippines gross domestic product (GDP) will grow at an average of 6.0 percent from 2015 to 2019.

The country’s medium-term GDP growth will be the fourth fastest economic growth in the world only next to India’s average medium-term GDP growth of 7.8 percent, Vietnam’s 6.8 percent, and China’s 6.7 percent.

The 6.0-percent average GDP growth of the Philippines in the medium term is higher than IHS’ GDP growth projection for Nigeria at 5.8 percent, Indonesia at 5.5 percent, Qatar at 5.4 percent, Malaysia at 5.3 percent, Angola at 4.8 percent, and Egypt at 4.5 percent.

In the long term or from 2020 to 2045, IHS said the Philippines’ economic growth will even surpass the China’s and it will be the third fastest growing economy in the world.

IHS’ GDP growth outlook for the Philippine in the long term is seen at an average of 4.6 percent, only next to India and Vietnam at 5.9 percent and 5.6 percent, respectively.

Indonesia’s long-term average GDP growth is projected at 4.6 percent while China is at 4.5 percent.

GDP growth winners in the long run will also include Chile with average growth of 4.4 percent, South Africa at 4.4 percent, Peru at 4.3 percent, Egypt at 4.2 percent, and Angola at 4.0 percent.

Earlier, IHS Asia Pacific Chief Economist Rajiv Biswas noted that the Philippines has the capacity for robust long-term economic growth supported by its strong information technology-business process outsourcing (IT-BPO) industry and remittances from Filipino workers abroad.

Biswas also stressed the need for the Philippine government to improve infrastructure and the local business climate in order to attract more foreign direct investments (FDIs) that will boost job generation.

While the Aquino government has made efforts to improve this ranking, there is still a great deal of work to do to improve the overall competitiveness of the Philippines to attract large inflows of FDI, he mentioned.

To improve the country’s business environment, IHS economist mentioned that the government should increase its investments in infrastructure to create high quality transport infrastructure for roads, ports and airports.

There should also be more competitive power sector that will be favorable to manufacturing and services sectors.

This will help to reduce poverty rates by boosting jobs growth and household incomes, Biswas stressed. (PNA)