Investing in Philippines could be an attractive opportunity for anyone looking to tap into emerging markets.
The Philippines is something of “an afterthought for investors” in Asia, says The Economist. Local politics is often ugly and the infrastructure is unreliable, but GDP growth has been impressive, averaging 6% a year since 2012. The country of 115 million is in a “demographic sweet spot”. Half of the population is still rural, leaving plenty of scope for growth as urbanisation occurs.
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That is not cheap enough to tempt foreign investors, who have been net sellers of local stocks every year since 2018, says Ian Sayson on Bloomberg. More recently, Philippine stocks have proved especially vulnerable to rising US interest rates. “Still, as the US rates cycle turns markets might start to cotton on to one of Asia’s neglected growth stories. Investors need not jump in yet, but it’s one to watch.
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