Consumer Boom Fuels Philippines as Neighbors Hit by Export Pain
The Philippines is poised to join the world's 10 fastest-growing economies this year and next as Filipinos buying goods from dresses to condominiums cushion a faltering in exports that's hurt the rest of the region.
The economy extended a fourth quarter of expansion of at least 6 percent, boosting full-year growth to 6.6 percent, faster than economists had forecast. Consumer spending has risen to about three-quarters of gross domestic product from 63 percent a decade ago, World Bank data showed. The Philippines will expand 5.5 percent this year, and 5.4 percent in 2014, putting it among the fastest-expanding economies, according to Bloomberg surveys.
"We have a generation that has a better lifestyle now," said Frances de la Cruz as she waited in line to pay $100 for a black dress and a belt at a Zara store in a packed mall in Manila on a recent Saturday. De la Cruz, a 31-year old call center director, is part of an industry that has helped spur 10 percent income growth in the nation from 2009 to end-2011, along with remittances and a burst of manufacturing from Japanese investment.
The consumer spending strength means the nation may be more resilient to global shocks compared with other Asian export- dependent economies from Singapore to Taiwan, where growth slumped in 2012 as demand for goods eased.
Since he took office in 2010, President Benigno Aquino has sought to transform the Philippines from a laggard to one of the fastest-growing economies in the region by increasing government spending, curbing the budget deficit and reducing corruption, taking the country closer to an investment-grade rating.
Tommy Hilfiger
Consumer spending in the nation, among the most consumption-driven in Asia, rose 6.9 percent last quarter, holding above 5 percent for an eighth quarter. That's spurred sales of brands from Tommy Hilfiger to home-grown Suyen Corp.'s Bench.
"The Philippines has proven it's got particular strength in mitigating external headwinds because its domestic demand has kept the economy running even as other nations suffered," said Vishnu Varathan, a Singapore-based senior economist at Mizuho Corporate Bank Ltd. "Now with Aquino boosting infrastructure, capacity building, the growth potential over the longer term is rapidly increasing. The Philippines is on a very good footing to remain the blue-eyed boy in the region."
The Philippine peso has risen about 5 percent in the past 12 months, the best performer among 25 emerging-market currencies tracked by Bloomberg. The benchmark Philippine Stock Exchange Index climbed to a record in January.
Demographic Dividend
Southeast Asia's second-most populous nation already enjoys a demographic dividend compared to many of its neighbors, with most of its population in the 15-to-64 working-age range. Its labor force will expand by almost 18 million, or 31 percent, to 75 million by 2020 compared with 2010, with a median age of 23.9, Merrill Lynch has predicted. That compares with 37.8 in China and 43.4 in South Korea.
"It's a young, booming population," said Trinh Nguyen, a Hong Kong-based economist at HSBC Holdings Plc. "There's an energy, a euphoria you can sense in the Philippines. The domestic market is burgeoning, thanks to strong population and income growth. This has attracted flows from foreign investors looking to capitalize on the consumption-driven economy."
Japanese investment into the Philippines grew about 30 percent in 2011, while global retailers including Harry Winston Diamond Corp., Uniqlo Co. and Forever 21 Inc. have opened shop or expanded operations recently. Auto sales rose 11 percent in 2012, according to the Chamber of Automotive Manufacturers of the Philippines.
Rating Outlook
Aquino, the son of former President Corazon Aquino, is increasing spending to a record this year while seeking more than $17 billion of investments in roads and airports to spur growth to as much as 7 percent in 2013. Standard & Poor's in December raised the country's sovereign rating outlook to positive, citing improved governance and public finances.
A peace agreement with Muslim guerrillas in the mineral- rich Mindanao island in October is forecast to bring about $1 billion in investment commitments. Aquino has also shown progress in the fight against graft, with Transparency International raising the country's ranking on its annual corruption index to 105 last year, higher than Indonesia at 118.
Exports, which made up about 30 percent of GDP in 2012, slowed in November from the previous month. The nation also remains reliant on remittances, which account for about 10 percent of GDP. The unemployment rate is 6.8 percent.
"Growth is uneven," Nguyen said. "The government needs to raise investment to create jobs and cut poverty to make growth more inclusive."
That hasn't deterred consumers like Charlotte Co, a 26-year old accounting analyst who bought a one-bedroom condominium for 3.2 million pesos ($79,000) in 2011 and purchased a bright yellow Céline Trio bag for $1,000 in December with her savings.
"I would be brave to invest if I don't believe things are really changing," Co said. (http://bloom.bg/XVmWwg)
Bloomberg
Philippine unemployment rate of 6.8 percent. IS NOT CORRECT
base on he fact, census are relying on data output from their house to house census but the problem there is most r a culture of the filipinos is to tick the "Self Employed" Status rather than choosing "Jobless"
If you will ask them what the "Self Employed" comprised of? Their answer is inconsistent... such as... offering home service to their neighbors sometimes in a week or month, helping the neighbor to have free food, some are engage in illegal activities such as "last 2" , "last 3" Jueteng.. and some are hiding the fact that they are selling illegal drugs.
The Philippines is a very unique survival country in the world. Only in the Philippines you could survive your ₱100.00 for 1 month, healthy and not starving...... because if you are still living in the Provinces, the culture of giving is still there.
When you are living in the remote provinces, if you are friendly and willing to help your neighbors, they will include you in their food budget or each meal. IF you will help the fishermen they will give you fish... if you will help other's farm you could have some of their harvest.....
Good attitude in the Philippines could make you survive for a ₱100.00 for 1 month.
If the Census Office will also include the system in the remote provincial areas then you could count or estimate that the unemployment of the Philippines would be probably from 23% - 30%.
Its unbelievable data right? even the world bank could not believe in this
KOREK ka dyan!, ganyan ang ugali ng karamihan kasi nahihiya silang sabihin na wala silang trabaho, tambay at gumagawa ng iligal na gawain.
Talking about selling druga, E Highlight ko talaga ito... The worst Problem in Iligan City... Please Manila HELP THIS.
* Barangay SARAY - 88% of residents are Drug Pushers and drug Users.
* Barangay Canaway - 75% of residents are Drug Pushers and drug Users.
* Barangay Santiago, Tubod, Bagong Silang - 15% of their residents are Drug Pushers and drug Users.
* Criminology Students in Iligan Medical Center College, Iligan Capitol College, Lyceum Foundation and Saint Michaels' College 80% Drug users ro drug addicts.
My data is base on survey noong nag stay ako ng 6 months para e experience ang buhay doon.
Bawat bahay sa Saray ay may dope session room.
Ang mga Criminology Students ng mga colleges naging addict kasi mga professors nila addict rin. ang comment ng professors nila dapat raw masubukan nila ang drugs para alam nilakung paano huhulihin ang drug pushers at ang mga nag try ay nagiging addict na rin.
Ako man na sumubok, ay nahihirapan na ring kumalas sa bisyong ito pero pinilit kong umiwas...
Kaya panawagan sa Manila Government tulungan nyo ang Iligan City. Ang Talamak na drug pushing sa Iligan ay pinamumunu-an ng mayayamang Maranao na muslim from Marawi City.
Tulungan nyo ang mga kabataan sa Iligan. Mga kaibigan kong mga Pulis sa Iligan ay addict na rin, kasabay na rin namin sa pag hitit..
galing tsina ang shabu
"Criminology Students in Iligan Medical Center College, Iligan Capitol College, Lyceum Foundation and Saint Michaels' College 80% Drug users ro drug addicts"- ISARADO ANG MGA SCHOOL NA YAN
Itong Mga Nasa Itaas ko ay pawang mga "NEGATIVIST" dirt people in our Country.
Baka Ung mga sinasabi nyo eh ung ilang percent nlang ng wala work at hinde kyo nag Conduct ng tamang observation. Tama bang bilangin nyo lang eh ung mga wala work tlagang kung ganon way nyo sa pagtingin eh maramitalaga yan. But the point is the avarage. Gets nyo mga kolokoy?
Kamote itong mga Negativistang Kumunista!!! Go to Chinaks!!
Sabi ng New York Times.......
Musicians, meanwhile, can make as much as $2,000 a month working in five-star hotels, or $800 to $1,500 a month working on a cruise ship, according to performers and government officials. But they are also vulnerable to exploitation, Mrs. Paragua said, and some earn $400 per month.
I visited Oman last year at mga pinoy din ang nag piferform sa mga class hotels doon which we able have a chance to talk to them. Sa tingin ko napakababa ng kinikita ng mga Musicians and singers natin sa totoo lang. Kung titingnan nyo ang hirap kaya ng trabaho nila.. artist kaya mga yan... at sakit sa lalamunan ang ginagawa nila kalusugan nila ang asset nila para kumanta. Kung Kikita man lang ng $400 a month, sana makahanap sila ng work dito sa Pilipinas.
Hindi lahat ng tao ay magaling kumanta at mahirap talagang kumanta.. hindi mababayaran ng piso lang ang pag entertain ng mga tao na pagod sa trabaho...
$400 is chicken monthly income for hardworking beggars and porters in major cities in the philippines. they're still poor because everytime they just spend all their money without saving. They are ignorant as most of the filipinos. you see our economy is booming driven by internal consumers demand. it is not balanced. economy is booming but the people have no savings.
"In spite of the country's achievements in 2012, the government will definitely not be lulled to complacency…We shall continue planting the seeds of a structural transformation in our economy to make it more investment and industry-led," said Economic Planning Secretary Arsenio Balisacan.
good news indeed.
wealth is not equitably distributed in this country
Now they want to privatize public hospitals and this is not going to help the poorest of the poor.
electricity cost is so high in the Philippines.
I wonder what the government will do with the poor getting poorer.
6.8% unemployment rate is success to DEVELOP countries. This is a fallacy, deception or propaganda. The U.S. has anaverage of 9.8 % unemployment rate right now. At magkano ang pasahod diyan? Kaya bang mabuhay nang marangal at makabili nang kotse o umupa nang matinong bahay at makakain nang mabuting pagkain ang karamihan ng mamamayan?
Kababasa ko lang nang isa pang article dito na "the Philippines' economic growth during the last quarter ws " 6.8%" din. Mukhang ......." 6.8% "....... ang paboritong numero nang propagandita diyan sa 'pinas!
The poor will get poorer if they will stick to their present minds...they must alter their mind in combating it to make the changes....if you will always rely on government you will be left behind...today you must plan what is best to your family, bare only a child you can afford to raise them, dont be baby makers...
People's income should not be wasted to material things, to much material things will also result to high electricity consumption, plan to grow it...To have jobs is not a guarantee that you will get a financial freedom , be wise invest what business is suit in your area....
It is not only the government that makes the poor poorer but it is also the highly educated, the rich, the businessmen, the politicians are all in cahoots to exploit us all.
They say OFWs are the new hero, wait until you come home and experienced being unemployed (companies will refuse to hire you because of your age and your educational attainment, and school you come from). It is not only a matter of mind set but because the Philippines rich and highly educated and those who fluent English are the ones discriminating the rest of the Filipinos.
This is happening and hundreds of thousands have experienced this but they are just quiet.
This practice of discrimination must be stopped.
Our PWDs are discriminated by companies run by Cojuangco, Lucio Tan, Gokongwei, Ayala, Washington Sycip, Lopezes, Aboitiz, George Ty, Pangilinan, Ramon Ang, Henry Sy, Tantoco, Tambunting, etc.
It is difficult to do business in the Philippines because of so many crooks in government and also in business.
Even in Senate and Congress, their employees receive several allowances, bonuses, almost 100% more than the regular government employees.
Imagine, the Senators and Congressmen liquidation of funds is done thru certification only (even without appropriate receipts)
Bakit naman ganito?
Iyong mga kasambahay ang bayad ay P2,500.
Paano ka mabubuhay ng decente na ang sahod ay P2,500 - hangal lang ang magsasabi niyan.
Dapat ang bayad sa mga kasambahay ay minimum wage din.
Kahit nga minimum wage hindi ka mabubuhay sa Pilipinas with decency.
Iyong mayayaman (majority sa kanila), highly educated at mga government officials kasi sa atin ay mayroon slave mentality. Tangapin man nila o hindi iyan ang katotohanan.
To succeed, we need leaders (both in Government and Business) like those from Holland, Israel, Singapore, Canada, South Korea, Australia, and Japan.
Our rich, highly educated, politicians, government leaders are so greedy.
Our government (including governors, mayors, barangay captains,etc), private sectors are not Filipino centered but self centered.
Look what are they planning to do in our healthcare - they want to privatize them - what a crooked idea.
We need our government to fund our public hospitals to serve poor filipinos.
Ano ba naman President Pnoy - bakit utak biya iyang si Ona.
Iyong nga firecrackers nga hindi nila kayang gawin zero iyong casualty during New Year - sa palagay mo kaya by privatizing our public hospitals eh who will be affected by increase healthcare prices?
Anu ba itong mga leaders natin - may mga doctor, masters degree, and PhD
palpak din ang utak.
Ewan!!!!!
Nasaan na iyong Flood control system aber?
Si Ernie Maceda, Binay, Estrada, Mig Zubiri, at iyong babaeng Magsaysay tatakbo raw naku naman ano ang gagawin nila KURAKOT ANG MGA IYAN.
Buti na lang pinag-aaralan pa ni Pnoy iyong rehabilitation ng EDSA.
Ang dami kasing dapat gawin, dapat iyong mga may shops ng mga imported cars, iyong mga may restaurants, iyong mga malls, residential buildings, hotels, along EDSA dapat iyong mga entrances nila hindi infront of EDSA na isang highway, dapat at the back of their building ang mga entrances nila.
Iyong mga subdivisions na Dasmarinas, Forbes at iyong iba pa dapat bilhin ng government ang bawat isang bahay immediately na nasa EDSA para makapag-create pa ng isang lane on both sides ang EDSA - Kung gosto nila magagawa naman ito eh.
Iyong mga Lopezes nga binili nila iyong mga bahay na papunta sa Rockwell Towers o private company iyan kung gosto ng government magagawa nila iyan.
Para naman iyong mga bike lanes along EDSA ay hindi masikip at may mga appropriate bus stops and taxi stops pa na papasok na isang lane at puwede pa ring maka create ng walkways.
At least maayos. Pero ang pinaka maganda is for our government to consult urban planners.
Dapat ang mga blessings ay hindi lang iyong mga mayayaman at iyong mga may masteral at doctorate degrees, dapat pati rin iyong mga aged, PWDs, undergraduates, lower skilled ay mabless din.
Kailan kaya mangyayari ito.
Iyong mga may edad nga sa Singapore, UAE, Hongkong, South Korea, Japan, Australia, New Zealand, Canada, USA, UK, Holland, Malaysia, etc ay nabibigyan pa ng mga trabaho.
Sa Pilipinas lang sobra kung maka discriminate ang mga businessmen, mayayaman, mga politico, mga nakapag-aral na mayroon masteral and doctorate degrees, mga galing kuno sa mga exclusive schools - iyong mga frame of mind nila ay hindi makatao - puro kalamangan ang iniisip.
Hindi naman nila madadala sa hukay ang mga kayamanan nila.
Sa Pilipinas masyadong mababa ang kaparusahan sa mga criminals kaya ayan ulit lang sila ng ulit.
Iyong mga holdapers, kidnappers, robbers, illegal drug suppliers and users dapat non-bailable ang mga iyan or kung bailable man gawing P1,000,000 to P15 Million ang ipataw.
If you want to have a decent life in the Philippines, a family of 5 (parents + 3 children) must have a combined earnings of at least P60,000 per month - 3 nutritious meal a day, house rental, electricity, water, transportation, medical/dental, plus life insurances.
If you are single, you need to earn at least P25,000 a month to live a decent life.
P2,500 ang bayad sa mga kasambahay - para talaga silang slaves kong i-trato ng mga mambabatas natin.
Paano ka naman mabubuhay ng P2,500 a month? Ganyan sila talaga - kailangan mabago ang pananaw nga mga mambabatas, politico, mga mayayaman, businessmen sa atin.
Dapat ang mga kasambahay minimum wage earner din sila dapat.
Inaabuso ng mga mayayaman ang kumuha ng mga kasambahay. Ang yayabang magha-hire sila ng mga 3 to 6 na mga kasambahay tapos ang pasahod lang nila per month ay P2,500 eh ang earnings naman nila ay P1 Million pataas. Para talaga silang mga hari at reyna.
Saan ang equitable distribution of wealth dito?
We need to have infrastructure similar to what they have in The Netherlands.
Dapat ang indibidual sa atin may income na di bababa sa 10,000 a month....sana
Maraming matitinong Pilipino, millions kami, ang malaking problema ay iyong mga nagpapatakbo ng government at mga malalaking businesses sa bansa.
We need economic growth with appropriate employment growth.
We need to further improve the lives of our farmers, fishermen, laborers, PWds, aged citizens, low skilled workers, teachers, etc.
We need to improve our agriculture, fishing, infrastructure, Research and Development, Marine Biology, Tourism, manufacturing(including the massive production of spare parts for cars, appliances, cellular phones, etc.).
Hay, tinanggal nyo kasi si Marcos, ayan tuloy ang napala ng mga pilipino. Wala ng ibang presidente na may awa sa mahihirap at gumagawa ng proyektong napapakinabangan ng buong pilipinas, si President Ferdinand Marcos lang. Sayang at inalis nyo sa pwesto ang presidente na may awa sa Pilipino.
At sa mga galit kay Marcos, tingnan nyo ang paligid nyo, lahat ng infrastucture na pinapakinabangan nyo ay gawa ni Marcos, imagine, 1970-1980's projects yan, naisip na nya lahat yan... yan ang napala ng Pinas sa pagtakwil sa tutuong mabuting Presidente... kinakarma ang Pinas at mananatiling mahirap pag hindi nyo paganahin ang mga utak nyo. Bumoto kayo ng totoong maka-Pilipino at hindi puro Aquino. Edsa People power, ano ngayon ang Pinas... pati BNPP na pinakamalaking proyekto ni FM, hindi nyo ginamit, magdusa kayong lahat!!!!