On October 29, Moody's assigned the rating to the Philippines Ba1 with stable outlook, in the wake of S&P (BB+ and stable outlook last July), one step away from investment grade. From Focus of the Economic Studies Office SACE emerges as cI was possible thanks to structural reforms which have transformed the Philippine economy over the past two years.
La GDP growth, driven by domestic consumption (71% of GDP) and exports of electronic products, was 6,1% in the first half of 2012, with estimates revised upwards. The containment of the public deficit by virtue of the increase in revenue (+10% in 2011), thanks to a more efficient tax reform and the fight against evasion, has led to stabilizing the rate ofinflation at 3,2%. An improvement in welfare can be seen from the massive intervention on infrastructure through the tool of PPPs (private-public partnerships) in the motorway, public transport, logistics in the agri-food sector and water management systems. Although the flow of FDI (1,3 billion USD in 2011) is lower than the average of the countries of South-East Asia due to the stringent legislation in force (Foreign Investment Act of 1991), the positive sentiment of the market is reflected in other indicators: the constant appreciation of the currency, the performance of the stock market, the lowest cost of CDS and the reduction of yields of bond governmental. Le foreign exchange reserves Esther they have increased five-fold since 2005, exceeding the level of foreign debt, thanks to the inflow of foreign capital and considerable remittances from abroad, amounting to about 20 billion USD.
A was signed peace agreement with the group Fun Islamic Liberation Front, the main source of destabilization for the country in recent years. It is an important signal, considering the estimated availability of Mineral Resources of the country (3,8 million tons of gold, 5 million tons of copper and 811 million tons of nickel) in the islands of Luzon e Mindanao, base of the guerrilla MILF.
The English language (official) facilitates relations with foreign countries and has contributed to development and dissemination of services ICT: The Philippines has established itself as a leading country in the services of business processing outsourcing, whose turnover has grown by 30-40% in recent years. The country also brings benefit from the so-called democratic sweet pot: the population is relatively young, with a high literacy rate (93%) and the universities graduate almost 500 students every year, many of whom in scientific disciplines. There labor it turns out therefore qualified and at low cost.
The government created special economic zones, i.e. industrial centers equipped and managed by public or private entities that offer considerable tax breaks to both local and foreign investors. With the'Executive Order 79 also changed the current mining law (Mining Act of 1995), reducing the control of the provinces, guaranteeing greater transparency and creating a more balanced mechanism for the distribution of tax revenues. Thanks then to the trade agreements concluded within ASEAN, the country represents a good basis for exporting its products to other countries of South-East Asia, a market made up of around 600 million potential consumers.
Italy is still not very present in this market with great potential: medium-high-end Italian brands in the clothing sector are nevertheless highly appreciated and foreign exporters can enjoy the competitive advantage offered by the appreciation of the Weight :, which made imports cheaper. Furthermore, the development of the manufacturing industry (electronics, textiles, chemicals, agri-foods) constitutes an opportunity for the instrumental mechanics Italian. Finally, the growth of residential construction and tourism require products from the manufacturing sector in which the Made in Italy: can play a major role.
Despite the notable improvements, the road to structural reforms is, however, still long. The judiciary lacks impartiality and corruption is still widespread. The regulation still does not facilitate a fully efficient entry of foreign capital, while the bureaucratic system is still too slow and dispersive.
