The market in the Philippines has had a fantastic year
Have a look at the chart below of the New York listed iShares MSCI Philippines exchange traded fund (ETF)…
As you can see from looking at the chart above, this ETF is breaking higher. And it has the potential to see gains of 40% or more, Sean Brodrick in Investment U
There are a number of reasons that the Philippines could continue to be a top investment performer and ideal if you’re looking to invest offshore
Reason #1: Foreign investment is flooding in
Six reasons to invest in the Philippines
Last year, foreign direct investment (FDI) rose 20%. That took it to $3.9 billion. For just the first four months of 2014, FDI rose another 9%.
Reason #2: Changes to banking laws
The government passed a new law recently that means foreigners can own up to 100% of their banks.
This has led to interest from countries including Japan and Malaysia to look at investment opportunities there. And this move should see even more FDI flowing into the Philippines.
Reason #3: The economy is growing – fast
In 2013, the economy grew 7.2%. In the first three months of this year, it grew 5.7%.
That’s much faster than the lack lustre growth in South Africa at the moment. The South African economy contracted in the first quarter of the year. Next week, we’ll find out how the economy performed over the second quarter.
The Philippines ranks as the third fastest growing country in Asia after China and Malaysia.
Yes, the Philippines has had its fair share of natural disasters to contend with, but the government is confident it will still achieve growth of 7.5% for this year.
Reason #4: Consumer confidence is on the rise
A sturdy 80% of consumers in the country see their personal finances over the next year as good or excellent. The country’s benefitting from a strong economy and a growing middle class.
Reason #5: Its IT industry is booming
The country is attracting a large number of foreign call centres as it has a lot of well-educated English speakers.
Reason #6: It’s resource-rich
The Philippines has a host of resources, some of which are still under development. This includes energy, gold, copper, silver, timber and nickel.
If you’re looking for an offshore investment opportunity with a difference, the Philippines could be for you. Look to one of the Philippines-based ETFs.
So there you have it, six reasons why the Philippines could prove a prime place for your money.
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