WEALTH REPORT: Philippines to be 6th Fastest Growing Economy in next 40 Years!

 

The Philippines is projected to have the world’s sixth fastest growing economy in the next 40 years, according to Knight-Frank and Citi Private Bank’s 2012 Wealth Report.

 

The report predicted that the Philippines will have an average yearly gross domestic product growth of 7.3 percent from 2010 to 2050.

 

The country will surpass Mongolia at 6.9 percent, Indonesia’s 6.8 percent, Sri Lanka’s 6.6 percent and Egypt’s 6.4 percent. Nigeria topped the Wealth Report ranking with a GDP growth of 8.5 percent, followed by India at 8 percent, Iraq at 7.7 percent, Bangladesh at 7.5 percent and Vietnam at 7.5 percent.

“Citi research shows that while China and India are likely to grow rapidly over the next 40 years, there are other key countries with promising chances for growth that do not necessarily match the traditional assumptions about where future growth will emanate from,” said Grainne Gilmore, Knight Frank’s head of UK Residential Research. Thus, instead of including Brazil and Russia on its list of Global Growth Generators (3G), “Citi include[d] countries such as Bangladesh, Egypt, Indonesia, Iraq, Mongolia, Nigeria, Philippines, Sri Lanka and Vietnam on this list,” the head researcher said.

 

Willem Buiter, Citi’s chief economist, defined 3G as the “countries, regions, cities, trade corridors, sectors, industries, firms, technologies, products and asset classes that over the next five, 10, 20 and 40 years are expected to deliver high growth and profitable investment opportunities.”

 

“All of these countries are poor today and have decades of catch-up growth to look forward to,” Gilmore added. Meanwhile, Europe countries dominated the bottom 10 of the Wealth Report as they have the lowest projected GDP growth. Spain and France were ranked at the bottom at 2 percent; Sweden, Belgium and Switzerland at 1.9 percent; Austria at 1.8 percent; the Netherlands and Italy at 1.7 percent; Germany at 1.6 percent; and Japan at 1 percent.

 

END TO WESTERN HEGEMONY

 

Consistent with the region’s growth, Knight-Frank and Citi Private Bank also noted a “shifting emphasis to the East” when it comes to a majority share in global GDP. This would signal an “end to Western hegemony” in terms of economic growth, Gilmore said.

 

Developing Asia – which accounted for 27 percent of global GDP in 2010 – is predicted to have a 44 percent share of the total world economic growth in 2030. This could even grow further to 49 percent in 2050, the report said. Meanwhile, North America – currently at 22 percent in 2010 – is predicted to contract to 15 percent in 2030 and 11 percent in 2050. Western Europe's share of 19 percent in 2010 will decline to 11 percent in 2030 and 7 percent in 2050.

 

“China will overtake the US to become the world’s largest economy by 2020, which in turn will be overtaken by India in 2050,” Gilmore noted. The report thus called countries in the Asia Pacific region as the “new world players” in global growth. “Many poor economies have opened up and reached the modicum of institutional quality and political stability that are needed for fast growth and rapid catch-up,” Buiter explained.

Meanwhile, in terms of wealth distribution, the report noted that the region covering South East Asia, China and Japan currently has 18,000 centa-millionaires (or those who are worth $100 million or more), more than North America's 17,000, and Western Europe's 14,000. London-based Ledbury Research foresees that in 2016 “the region will have extended its lead with 26,000 centa-millionaires, compared with 21,000 in North America and 15,000 in Western Europe.”

 

“We believe the number and concentration of centa-millionaires accentuates the trajectory of current global wealth flows,” said James Lawson, director at Ledbury Research, a company partner of the Market Research Society. “Trends seen in this wealth bracket are likely to be replicated in lower wealth tiers in years to come.”

 

PROGRESS SHIFT TO THE EAST

 

The report cited London School of Economics professor Danny Quah, who “calculated that the world’s economic centre of gravity – the average location of economic activity by GDP – is on the move.”

Quah calculated that in 1980, the world’s economic center of gravity – “a theoretical measure of the focal point of global economic activity based on GDP” – was in the middle of the Atlantic. By 2050, however, the “steady rise of emerging economies in Asia will have pushed the theoretical centre of gravity … to somewhere between China and India by 2050,” Knight Frank and Citi said.

 

Quah predicted that “political influence will follow a similar trajectory eastwards.” — DVM, GMA News

BY:  Marc Jayson Cayabyab, GMA NEWS; August 21, 2012 8:12pm

 


 

Why Retiring in the Philippines?

 

Like glittering emeralds in a sapphire sea, the 7,107 islands of the alluring archipelago of the Philippines sparkle with attractions to entrance both overseas travelers and residents in search of spectacular natural wonders and a unique cultural heritage. Lofty mountain peaks, glowing volcanoes, lush, pristine rain forests, peaceful, azure bays and an iridescent underwater world combine to create a multi-hued canvas of breath-taking beauty.  Asian, Spanish and American influences, together with the special qualities and customs of indigenous groups, have created a culture that defies comparison and is unmatched for warmth, hospitality and sheer enjoyment of life.

 

It is about having a better life, making your funds last longer, doing just about everything cheaper, living happier and carefree, it’s about how to have fun in your retirement years. Filipinos are among the most hospitable races on Earth. Filipino hospitality is renowned all over the world. Filipinos’ friendliness, cheerfulness and compassion are qualities that will make retiring in the Philippines truly feel like one has found a second home. They are a happy people, and have consistently rated among the top in every happiness index conducted.

 

English is one of two official languages in the Philippines. The other one is Filipino. English is widely used and most Filipinos are conversant in English. Language interpreters also abound and are available through the Department of Tourism.

 

The Philippines being an archipelago is known for its beaches, diving spots and beautiful scenery. It is rich in biodiversity and natural wonders. From the white beaches of world-class Boracay Island, to the beautiful hills of Tagaytay, the Philippines has thousands of islands that all offer a piece of tropical paradise.

 

 

 

 

 

 
 
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