Friday, January 13, 2012

Philippines to be the 16th Largest Ecoonmy

World’s 16th largest economy by 2050?


“STRONG FUNDAMENTALS and powerful demographics” can propel the Philippines into becoming one of the top 30 economies in the world by 2050, global banking giant HSBC said.

The country is projected to be the 16th largest economy by 2050, a “striking rise” of 27 places from its current ranking, the bank said in “The World in 2050” report released yesterday.

The Philippines was also categorized as one of 26 “fast-growth” countries expected to register an average expansion of more than 5% per year.

“They share a very low level of development but have made great progress in improving fundamentals. As they open themselves to the technology available elsewhere, they should enjoy many years of ‘copy and paste’ growth ahead,” the report read.

HSBC’s “The World in 2050” aims to project the gross domestic product (GDP) growth of countries by assessing factors such as income per capita, rule of law, democracy, education and demographic change.

This is the second edition of the global survey, which has been expanded to 100 economies from last year’s pool of only 40. “A larger universe increases competition for the Top 30 and allows us to consider the ‘new emergers’ in the coming decades,” HSBC explained.

Emerging economies accounted for 19 of the top 30.

China was predicted to be the world’s largest economy by 2050, followed by the United States, India, Japan, Germany, the United Kingdom, Brazil, Mexico, France and Canada.

Taking the 11th to 20th places, respectively, were Italy, Turkey, South Korea, Spain, Russia, the Philippines, Indonesia, Australia, Argentina and Egypt.

Rounding up the top 30 were Malaysia, Saudi Arabia, Thailand, Netherlands, Poland, Peru, Iran, Colombia, Switzerland and lastly, Pakistan.

“This research strengthens the conclusions of the original report, which found that [the top economies] will be countries that are currently ‘emerging’. Our update shows that it is not just the likes of China and India that will be powering global growth over the next four decades. Countries as varied as Nigeria, Peru and the Philippines will also be playing a significant part,” HSBC said.

The survey, in particular, noted the Philippines’ progress in improving its economic infrastructure. Moreover, the fast-growing population is expected to increase the country’s labor force, which likewise benefits from the quantity and quality of education.

“There are some truly remarkable hot spots in Asia... The star performer, however, is the Philippines where the combination of strong fundamentals and powerful demographics gives rise to an average growth rate of 7% for the coming 40 years,” the report read.

HSBC projected that the country would have an average GDP growth of 8.4% from 2010 to 2020, 7.3% from 2020 to 2030, 6.6% from 2030 to 2040 and 5.8% from 2040 to 2050. -- D. C. J. Jiao


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