Philippines Ranks 2nd Asia's Fastest Economiic Growth in 2016

The Metro Manila skyline with its towering commercial and residential buildings, depicts a photo of continued economic progress. (Photo by Jacqueline Hernandez) | Manila Bulletin

PH now Asia’s 2nd fastest-growing economy, expands by 6.8% in 2016

The Philippine economy advanced 6.6 percent in the fourth quarter of 2016, on the back of higher investment and consumption, bringing the full-year growth to 6.8 percent.

Last year’s gross domestic product (GDP) growth rate makes the country the second fastest growing major Asian emerging economy, with China growing at 6.7 percent.

National Economic and Development Authority (NEDA) Director General Ernesto Pernia said this is near the high-end of the government’s target of 6 to 7 percent growth rate for 2016.

While the U.S. and the European Union have criticized President Rodrigo Duterte’s deadly drug war and investors have balked at his anti-U.S. rhetoric, his ambitious $160 billion infrastructure plan and push for greater investment is strengthening the growth outlook.

According to NEDA, expansion in investments grew by 15 percent. Public investment through public construction expanded by 23 percent, faster than the 20.1 percent growth in the third quarter.

Private consumption also thrived to 6.3 percent in the fourth quarter, though slower than the third quarter. The growth has been attributed to high consumer confidence, modest inflation and interest rates, and improving labor market conditions.

The World Bank forecast expansion will exceed 6 percent until 2019, among the fastest growth in the world this decade. (With a report from Bloomberg and Manila Bulletin)

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Philippines tells outsiders not to use ASEAN as 'proxy' for USA -China Power rivalry

Philippine Defence Minister Delfin Lorenzana addresses the Fullerton Forum at the Shangri-La Dialogue Sherpa Meeting, organised by the International Institute for Strategic Studies, in Singapore on January 23, 2017. (Photo: AFP / ROSLAN RAHMAN)

Philippines tells outsiders not to use ASEAN as 'proxy' for rivalry

SINGAPORE (Reuters) - The Philippines told countries outside Southeast Asia on Monday not to use the region as "a proxy for their rivalry" as it wanted to preserve unity and establish a mechanism to resolve disputes in the South China Sea.

The Philippines is chairman of the 10-member Association of South East Asian Nations (ASEAN) this year and will host its annual meetings, some of which are joined by outside powers including China and the United States.

The issue of territorial disputes in the South China Sea pitting China against several Southeast Asian countries has in recent years emerged as a source of friction in the bloc.

Some ASEAN countries have taken positions on the issue in line with China, while others have been more suspicious of China's assertiveness, reflecting U.S. thinking.

Philippine defense minister Delfin Lorenzana told delegates from more than 20 countries at a security conference in Singapore that outside powers should not pursue their competition in the region.

"As the host to the leaders of the U.S., China, Japan, Russia and India, we will have to remind our friends, firmly if necessary, not to use ASEAN as a proxy for their rivalry," Lorenzana said.

"We will reaffirm the unity and solidarity of ASEAN amidst this emerging super-power competition."

ASEAN is drawing up a code of conduct in the hope of making sure all claimants follow legal and diplomatic processes in settling territorial disputes.

Lorenzana said he hoped the code would provide the framework for lasting solutions to the disputes over the waters. About $5 trillion worth of goods passes through the South China Sea every year.

"We want a rules-based, lasting solution to this issue," he said.

China has built several artificial islands in the exclusive economic zone of the Philippines, which an arbitration tribunal last year ruled unlawful.

With billions of dollars of potential Chinese trade and investment at stake, the Philippines has a difficult balancing act in upholding its sovereignty claims while staying on the better terms President Rodrigo Duterte has established with historic rival China.

On Monday, China agreed to cooperate with the Philippines on 30 projects worth $3.7 billion focusing on poverty reduction, the two countries said after a meeting in Beijing.

It marked the first announcement from a two-day visit by a Philippine cabinet delegation to China that comes three months after President Rodrigo Duterte visited Beijing to pave the way for new commercial alliances. [L4N1FD207]

Vietnam, Malaysia, Brunei and Taiwan also have claims in the waters.

(Reporting by Fathin Ungku; Additional reporting by Karen Lema in MANILA; Writing by Anshuman Daga; editing by Robert Birsel)  - Business Insider

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