The Philippines, the world’s 33rd largest economy, might be on a sustainable upward growth trajectory. Under the leadership of President Benigno “Noynoy” Aquino III, the country is fighting corruption as well as tax evasion and is investing heavily in its infrastructure. The 2012 budget has increased infrastructure spending by 26% over 2011. Much of this funding will go to roads, trains as well as water treatment and distribution.
The services sector, contributing 67.7% to GDP, is driven by a growing Business Process Outsourcing (BPO) industry which will employ over 1.2 million people and generate revenues of nearly US$ 25 billion by 2016. The country is also a rising tourist destination. In the first three months of 2012, the country attracted 1,148,072 visitors, 16% more than in last year. It is projected that the middle class will form a quarter of the Philippines’ population by 2015.
Improved governance, increased infrastructure spending and a growing services industry could very likely position the Philippines as Asia’s next growth story.
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