Reconstruction activities covering the destruction caused by Typhoon Yolanda in Central Philippines and strong consumer spending on the back of remittances and the boom in business process outsourcing (BPO) sector will fuel the Philippine economy to keep growing in 2014.

 

While 2013 was arguably a stellar year for what was previously tagged as the “Sick Man of Asia,” the year was punctuated by external headwinds blowing in the form of the US Federal Reserve tapering and the budget crisis, plus the conflict in Syria, that spooked foreign funds to flee from emerging markets, including the Philippines.

 

The domestic front was also marred by gut-wrenching natural calamities: a 7.2-magnitude earthquake and the killer Typhoon Yolanda. The disasters raised concerns over the economy as economic managers noted the impact of Yolanda alone could shed a percentage point from the gross domestic product (GDP).

 

However, a sense of optimism seems to prevail particularly among market participants.

 

“These problems are temporary... we will see light at first quarter of 2014,” Harry Liu, president of Summit Securities Inc.

 

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http://www.gmanetwork.com/news/story/341918/economy/business/reconstruction-weak-peso-among-phl-economic-drivers-in-2014