Globetrotters of the Philippines. Carmen Ong Mitchell Todd Reed Bailey Gary Haack Grant Sander

Transcription

1 Globetrotters of the Philippines Carmen Ong Mitchell Todd Reed Bailey Gary Haack Grant Sander

2 AGENDA 1. Introduction 2. Geographic Location 3. Economy 4. Socioeconomic Factors 5. Financial Markets 6. Currency Conditions 7. Country Risks 8. Investment Opportunities

3 INTRODUCTION Known as the Republic of the Philippines Capital: Manila Population: 104 million Official language(s): Filipino & English Symbolism of the national flag Ethnic groups Religion: Christianity

4 GEOGRAPHIC LOCATION Made up of 7,100 islands 500 miles off coast of Vietnam Mountainous and prone to natural disasters Climate: Tropical and monsoonal Time zone: GMT+8

5 ECONOMY Mixed economic system Member of APEC and ASEAN Economic sectors: Agriculture: 9.6% Industry: 30.6% Services: 59.8% Source: CIA World Factbook GDP: $313.4 billion 6.7% growth from GDP per capita: $8,300 Unemployment rate: 5.6% Inflation rate: 3.2%

6 ECONOMY

7 Socioeconomic Factors Education In 2013, the country signed into law a K+12 Program Ensures students 12 years of schooling The country has around 2000 higher level of education institutions Literacy rate is 96.3% Male is 95.8% Female is 96.8%

8 Socioeconomic Factors Standard of Living Average Income: 267,000 pesos Average expenditure: 215,000 pesos Average savings: 52,000 pesos Average GDP per person is $8,344 The US s is $59,680 The median marriage age is 24 years The US s is 38

9 Socioeconomic Factors Poverty and Employment

10 POLITICAL ENVIRONMENT Republic with a presidential form of government Executive Legislative Judicial US-Philippines Relation Partnership for Growth Statement of Principles Promotes economic growth, improves the health and education of Filipinos, promotes peace and security, advances democratic values, good governance, and human rights; and strengthens regional and global partnerships. Department of State, Department of Defense, and the U.S. Agency for International Development (USAID) programs Rodrigo Duterte June 30, Present

11 FINANCIAL MARKETS Foreign Direct Investments Increased by 9% from June 2017 to June estimate of 1.05 Billion USD Quarter 1 and 2 of 2018, net FDI increased by 49.5% Waterfront Philippines 52 Week High: 1.35 USD 52 Week Low: 0.65 USD Current Price: 0.67 USD AgriNurture INC 52 Week High: USD 52 Week Low: 9.44 USD Current Price: USD Farming, Manufacturing, Distribution, and retail

12 FOREIGN DIRECT INVESTMENT Source: Santander Trade Portal

13 BALANCE OF PAYMENTS

14 BALANCE OF PAYMENTS

15 KEY FINDINGS Overall Q BOP reverses to a deficit. Account(s)/Entry Current Account Capital Account Financial Account Effects Deficit Net payment Lower net inflows Reasons Higher trade-in-goods deficit and the lower net receipts in the primary income account. Lower receipts from other capital transfers to the NG. The higher net inflows of direct investments was partly offset by the reversal of the portfolio investment account to net outflows.

16 Currency The Philippine Peso (piso) As of October 3, 2018: 54.33PHP/USD Very weak against the dollar Pegged to nothing Nothing pegged to it Bid/Ask Spread = 0.092%

17 CURRENCY (continued) Central Bank: Bangko Sentral ng Pilipinas Established 1949 along with current currency Experiencing very high YOY inflation right now Central bank target: 2-4% annually

18 BIG MAC PRICE INDEX

19 BIG MAC PRICE INDEX

20 COUNTRY RISKS Large income gap & wealth disparity Highly dependent on tourism Weak environment to grow business History of political instability Security issues & threats

21 COUNTRY RISKS (chart from credendo.com)

22 INVESTMENT OPPORTUNITIES President Duterte is attempting to encourage growth in the following areas by incentivising business through non-fiscal and fiscal incentives: manufacturing including agri-processing agriculture, fishery and forestry strategic services infrastructure and logistics including local government unit public-private partnerships health care services including drug rehabilitation mass housing inclusive business models environment and climate change innovation drivers energy

23 Investment Opportunities Key Industries Manufacturing Electronics manufacturing and semiconductor make up 51% of export revenue Construction President is creating several large infrastructure programs Energy Huge potential for mining, offshore drilling, and geothermal solutions

24 Questions?

25 THANK YOU

26 Our Website

27 REFERENCES (2018). Retrieved from Country Risk - Philippines. (2018). Retrieved from Foreign investment in the Philippines - Santandertrade.com. (2018). Retrieved from NDS Demonetization. (2018). Retrieved from Philippine Statistics Authority Republic of the Philippines. Retrieved from Philippines. (2017). Retrieved from Philippines - Plant and animal life. (2018). Retrieved from Philippines country profile. (2018). Retrieved from

28 REFERENCES Philippines Foreign Direct Investment Data Chart Calendar. (2018). Retrieved from Philippines Literacy - Demographics. (2018). Retrieved from Philippines: Introduction. (2018). Retrieved from PHP Philippine Peso OANDA. (2018). Retrieved from Quandl. (2018). Retrieved from United States - Country profiles - The Economist - World in Figures. (2018). Retrieved from Yahoo is now part of Oath. Retrieved from