Country & City Screening for Philippines Coursework

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Country & City Screening of Philippines
Philippine is considered as the twelfth largest population in the world, with a population of close to 100 million. On the other hand, Philippines remain the largest English speaking nation currently providing citizenship to the youngest population in the world, with close to two-thirds of the population aged 35 years. Relatively, the higher population growth helps in driving the economic growth of the nation over the next years, thus increasing the strain of the nation’s infrastructures (Seriño 47). The Philippine GDP growth is considered to have slowed for a second constructive year at 5.8%. This slow growth is attributed to the climate and weather related damages that affected the nation’s farm outputs and exports. In regard to this, several economists project that the economy of this nation may grow to 6 percent.
Consumer spending, supported by the remittances from Filipinos living overseas including the growing middle class is considered as the major GDP growth driver. In as much as Philippines still lags behind its regional peers, the element of fixed capital investments and manufacturing outputs are perceived as some of the aspects that accelerate the nation’s business confidence as established under the Aquino government. Supported by the global oil prices, the average year-on-year consumer price inflation also slowed from 4.1 percent in 2014 to 1.4 percent in the year 2015 as established in Figure 1 below. This is considered to below the 2-4 percentile range that is primarily targeted by the Philippine Central Bank (Gochoco-Bautista 90). The average inflation rate of the nation is therefore likely to accelerate in this year partly due to the food-supply pressures resulting from the prolonged and severe drought. However, this is likely to remains with the governments planning of 2-4 percent of the target band.
Figure 1.1: The GDP of Philippines
Philippine is considered to have reversed from US$2.9 billion balance of payment (BOP) deficit to $2.6 billion surplus in 2015. In this regard, it is essential to consider that this States merchandise trade gap. Philippines merchandise trade gap therefore widened in as much as the resilient remittances from the migrants and workers expanded the Business Process of Outsourcing of the state’s revenues (Sicat 290). On the other hand, significant smaller net outflows of the state’s financial accounts reflected a drop in the state’s resident’s offshore direct investments, deposit placements abroad, net withdrawals by the residents, repayment of loans owed to the local banks, and the deposit placements. This therefore pushed Philippines overall BOP position to a surplus territory. Additionally, this aspect made up for the largest net outflows of the state’s portfolio capital since both the foreign and local investors repositioned investments from the states emerging economy (Villegas et al 198). These also more than made up for larger net outflows of portfolio capital as both local and foreign investors repositioned investments from emerging economies due to uncertainties over global economic prospects and the U.S. Fed funds rate lift-off. Net foreign direct investment (FDI) inflows were flat at $5.7 billion in 2014 and 2015 but have generally increased under the Aquino government, growing from $1.1 billion in 2010 when President Aquino assumed office. The Philippines nevertheless remains among the region’s FDI laggards, with barely three percent of the total FDI stock in the region.
In establishing the ease of doing business in Philippines, it is essential to establish that the political situation of this state is stabilized. Since the election of President Benigno S. Aquino III on May 10, 2010 for a period of six years, the state has experienced stability in the manner in which the state runs its functions, an attribute that favors businesses. The president placed measures aimed at cracking down on illegal drug use and crime, while on the other hand curbing the element of corruption in the state of Philippines (Cabalfin 146). This therefore shifted Philippines to a federalized system of government, a transition that saw the Aquino Administration initiate peace processes between the Philippine government and the Moro Islamic Liberation Front (MILF)-a largest Muslim separatist group in the nation. The incoming administration will determine the next steps.
For now, both the government and the MILF have agreed to continue to adhere to the ceasefire.  Philippines therefore remain one among the four nations that were selected to join the Partnership for Growth (PFG), a government initiative that was established by the US president Obama for the sole aim of unlocking the growth potential of the nation towards the coming generations within the emerging market. Signed in 2011, the government of the United States is currently working with the Philippines to address some of the binding constraints to the nation’s growth and development (Diego III 350). This was therefore identified through a rigorous analysis that established the weakness of governa...