Credited as a key player in the Philippines’ economic strength, the manufacturing growth of the country is projected to carry on in the near future in a Capital Economics report.
Penned by senior economist Gareth Leather, the report said, according to an Inquirer.net article, that potentials in the near term “look good”, citing “low interest rates, strong global demand, and buoyant confidence levels” as contributors to the manufacturing sector’s progress “for the next few quarters”.
A positive outlook was also given in the medium term.
“With low-end labor-intensive manufacturing leaving China in search of cheaper places elsewhere, the Philippines should benefit,” it stated.
It also added that while “large parts of Asia” need to be concerned “about shrinking work forces”, a “sharp rise in the number of people in the working age” is something that the country can anticipate.
The weak peso versus dollar rate was also seen as beneficial to the situation, particularly to exporters, according to the Inquirer.net article.
The research firm also highlighted in the report that the Philippines’ current infrastructure investment is seen at a positive angle, as its “poor road, rail and port facilities” have been disadvantageous to potential growth.
It also noted that the country’s newly implemented tax reform law has provided the government “resources to fund further improvements”.
Story first appeared here.