Find out what’s happening in the property investment arena both in the UK and internationally
The jewel of South East Asia – welcome to the Philippines
April 28, 2016Article by Charlotte Ashton
The Philippines is the fastest growing country in East Asia, with more than 100 million citizens spread across its 7,000 islands, as well as some 8 million or so working and living indefinitely overseas. The rich natural landscape of the islands attracts tourists from around the world, while local talent has led to a thriving services industry and manufacturing sector.
The Philippines’ recent economic success and stability has not gone unnoticed. In April 2015, Standard & Poors reaffirmed the country as BBB Stable – its highest ever credit rating and one that the Filipino government is working hard to maintain. The country is committed to remaining one of Asia’s most attractive investment destinations, with a programme of infrastructure improvements underway as part of that commitment.
Fitch followed in Standard & Poors footsteps in September 2015, with a rating of BBB- Positive, while Moody’s graded the Philippines as Baa2 Stable in December of the same year.
Overseas economic links
The Philippines is well used to money flowing in from overseas. Remittances from overseas Filipino Workers account for around 13.5% of GDP. This was a significant factor in the country’s investment status upgrade and affords the Philippines an excellent measure of income stability, with money flowing in from different sources.
As well as remittances from overseas, the Philippines benefits from a flourishing manufacturing sector, with electronics and aerospace products making a significant contribution to GDP. Tourism also plays its part, with in-month international arrivals topping the 500,000 mark for the first time in January 2016 (they reached 542,258 in total for the month).
A global contender
Ray Withers, CEO of specialist property investment company Property Frontiers, has been observing the Philippines’ economy and investment climate for some time. He comments,
“The importance of the Philippines on the global stage is on the increase and this is something that investors should be keeping a close eye on. HSBC has projected that the Philippines will be the 16th largest economy in the world by 2050. It’s a country that’s moving from a largely agricultural past to a future dominated by the services industry (particularly banking), manufacturing and tourism.
“That’s a powerful combination of attractions in the eyes of overseas investors. Those looking for an investment opportunity offering strong returns in a stable market should be seriously considering the Philippines right now – it’s a strong global contender.”
For more information about investing in property around the world, contact Property Frontiers or call +44 1865 202 700.