The decline in interest rate -
Supports Economic Growth in the title is the tagline that I read on Bloomberg
Terminal yesterday, and I was trying to figure out what was going on there.
And it turns unexpectedly Philippine
economy is being stretched, among others reflected in the growth of government
spending rose 17.4% (y / y), consumer spending rose 4.6% in a year, investment
grew 13.5% and services rose 7.4% over the past year. (Exactly the same as what
happened to the Indonesian economy period before the economic crisis last
97/98).
Policy changes made by President Benigno
Aquino today to fix the bottleneck in government expenditure and consumer
purchasing power in the midst of the global economic slowdown, successfully
brought the Philipine become one of the most successful of its economic growth
and is recognized by the World Bank today.
Philippines could achieve economic
growth above 7% as of 2013 and then decreased in subsequent years. Changes in
regulations on services and infrastructure improvements were able to make this
country back its bullish economy.
With a total of 100 million people,
or approximately 1.5x of Indonesia and increased 281% since 1960 which only
amounted to 26.3 million, the country has successfully formed a working
rotation and utilization of the human capital in the era of MEA and globalization,
labor cost, quality and very productive in the appreciation by the
multinational company, for the government of the philippines to improve the
quality of infrastructure in his country, and then managed to bring in foreign
investment of capital investment in the country.
The Stock Market Rising
Indeed, if there is the potential
for economic growth in the long term investor will come in droves and foreign
capital flows would be massive, on the other hand, corporate profits are rising
and the risk of default is lower it will be easier for companies in Philipine
for taking out debt securities (bonds) , so the money market and the capital
market will be very well be a land investment.
If we take the data from 2008 to
2015, during the seven years of the Philippines scored a stock market rise of
110%, 3,800 to 8,000, and the potential to climb again this year.