The Filipino economy, Bosch Philippines strengthen
The Filipino economy is expected to continue its strong growth, according to the International Monetary Fund. While some of Southeast Asia is experiencing a reduced rate of growth, the Philippines could be headed in the opposite direction.
A growing economy in the Philippines
According to the Philippine Star, projections are high for the country. This can be good news for many people who send money to friends and family there, and a revitalized economy can have a positive effect for a large number of citizens. The numbers indicate a faster growth rate than the previous two years, which saw an increase of 6 percent and 5.5 percent.
"The economic growth momentum here is higher," said Shanaka Peiris, of the IMF. "The region has been softer than expected. Most countries' (forecasts) were reduced but the Philippines is an outlier."
He added that growth for the Philippines could reach 7 percent this year, but might eventually slow down to only 6 percent in 2014.
The rate of growth is positive for several other regions of Southeast Asia, with Indonesia, Malaysia, Singapore and Thailand – in addition to the Philippines – potentially experiencing positive gains of 5.6 percent in 2013, with an increase to 5.7 percent for 2014. While these numbers are slightly less than expected, they are still indicative of a strengthening economy in the region.
One major reason for the strong Filipino economy is good state spending, on items like the country's infrastructure, according to the IMF. This can help the boost growth in the short term, but steps need to be taken to ensure that the future isn't bleak.
"We can't sustain growth without doing anything… so structural reforms are very important…," said Peiris. "Looking at other countries, what we found is that for this growth take off to be sustained, what you need is growth in investments."
Domestic demand is another key reason for the increased strength, which contributed to gross domestic product growth of 7.8 percent in 2013, according to the Philippine Star. The IMF also reported that the rate of money transfers in the Philippines rose by 5 percent.
A booming industry, and an increase of jobs
One large company in the Philippines is using the strengthening economy to grow as well. Bosch Philippines expects double-digit growth in 2013, and its numbers are rising alongside IMF predictions for the country as a whole.
According to GMA News, the multinational engineering and electronics company is predicting the increase in sales and production because of an introduction of several new products and services, as well as a new facility in Cebu.
Joseph Hong, managing director of Bosch Philippines, mentioned that another reason for its growth has been the strong Filipino economy, and the positive statistics overall are helping his company thrive.
"The economy is quite strong, all economic indicators are positive," said Hong. "Based on this backdrop and internal activities, such as introduction of innovative products and services going forward, these are the key drivers for our growth."
The Cebu location is the first for Bosch Philippines outside of Manila, and the company saw a 30 percent increase in sales in 2012, up to $28.8 million. The executives still intend to expand further into the country, with the goal of adding more service centers for their booming automotive industry. That business grew by 11 percent in the last year.
"We're still expanding this service workshop concept," said Sangjo Park. "We are targeting nine more across the country this year."
Bosch Philippines also wants to expand its security system and thermotechnology sections as well, according to GMA News. Thanks to the overall Filipino economy strengthening, there is little reason to doubt that growth will continue. This is a positive sign for everyone who sends money to the Philippines.