Structural Weaknesses, China Tensions Threaten Philippines’ Growth

Since the election of reformist President Benigno Aquino, the Philippine economy has been on an unprecedented upswing, defying almost all earlier forecasts. Today, the country is among the fastest-growing economies in the world, expected to grow by up to 8 percent this year. No wonder the Philippines is seen as the next Asian tiger economy and is expected to attain a much-coveted “investment grade” rating this year.

The emerging consensus among experts is that the increasingly positive economic outlook is a result, first, of the Aquino administration’s good governance agenda focused on tough anti-corruption reforms and, second, of the larger focus on revamping the country’s flailing infrastructure through the introduction of major  public-private partnership projects. ...