MANILA, Philippines - The Philippines will be one of the fastest
growing economies in the world in the next 40 years as developing markets in
the region become prime sources of global growth by 2050, a new report showed.
Once tagged as Asia’s laggard,
the Philippines is expected to post an average of 7.3 percent growth until
2050, making it the 6th fastest economy in the world, Knight Frank and Citi
Private Wealth’s 2012 Wealth Report showed.
Among the top 10 economies, the
country’s growth rate will be faster than that of Mongolia (6.9 percent),
Indonesia (6.8 percent), Sri Lanka (6.6 percent) and Egypt (6.4 percent).
Nigeria tops the list with growth
expected to hit 8.5 percent in the next four decades.
While Asian economies except two
occupy top 10 countries by 2050, developed nations in debt-stricken Europe are
predicted to post significantly slower growth during the period.
“Many poor economies have opened
up and reached the modicum of institutional quality and political stability
that are needed for fast growth and rapid catch-up,” Citi chief economist
Willem Buiter was quoted as saying in the report.
“This, in turn, will mean an end
to Western hegemony in terms of output,” he added.
Developing Asia’s share of total
economic output, in particular, is expected to reach 49 percent by 2050 from
the present 27 percent, the report showed.
This, as the combined share of
North America and Europe dips to just 18 percent from 41 percent currently.
Buiter said Philippines will be
one of the “global growth generators” or “future drivers of growth and
investment potential” around the globe.
“Citi research shows that while
China and India are likely to grow rapidly over the next 40 years, there are
other key countries with promising chances for growth that do not necessarily
match the traditional assumptions about where future growth will emanate from,”
the report said.
“For example, Russia and Brazil,
which make up the so-called BRIC nations alongside China and India, do not make
it to Citi’s list of Global Growth Generators or ‘3G’ countries. Instead, Citi
includes countries such as Bangladesh, Egypt, Indonesia, Iraq, Mongolia,
Nigeria, the Philippines, Sri Lanka and Vietnam on this list,” it added.
The report added that India is
expected to become the world’s largest economy by 2050, overtaking China at No.
2 and the United States at No. 3.
Singapore, on the other hand,
will remain as host to the wealthiest people on Earth by 2050, the report said.
The Philippines, which is batting
for a six to seven percent growth rate this year, is off to a good start when
it posted 6.4 percent expansion in the first quarter, the third fastest in the
region next only to China and Sri Lanka.
Second quarter growth figures will
be released by Aug. 31 and officials are hoping it would exceed the first
quarter result.
The Aquino administration has
targeted a growth of up to 8.5 percent at the end of its term by 2016.
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