Philippines finds the sweet spot

The Philippine economy, once dismissed as the sick man of Asia, is returning to health as first quarter year-on-year GDP growth eclipsed China’s.

The Philippine economy, once dismissed as the sick man of Asia, is off its sickbed. The first quarter's year-on-year GDP increase of 7.8% eclipsed China's. Pervasive corruption, mismanagement and political violence stymied progress in the 1980s and 1990s. But last year saw a peace deal with the largest Muslim secessionist group.

The current president, Benigno Aquino, "has made corruption his primary target", says James Hookway in The Wall Street Journal. He has also clamped down on excessive government spending. Government "used to be a model of inflexibility, but that's all changed", says Benedict Hernandez of the Business Processing Association.

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