Philippines seen to surge into the top 20 economies

In a recent report, international bank HSBC forecasts the Philippines to become the 16^th largest economy in the world by 2050. It cited demographics, rising education standards, current income per capita, rule of law, and democracy as primary factors that will propel the quantum leap. The bank expects the country to post an average growth of 7 percent over the next 40 years and become a “star performer” in the global rankings due to favorable macroeconomic fundamentals—including stable inflation and a sound banking and financial system—and improving governance. The Philippines has sustained growth over the years, growing even when the global economy shrank in 2009.

HSBC also considers the rising population, if properly educated and trained, as an advantage that should help the economy generate more income over the next decades. It explained that the current relatively low income provides ample room for growth, adding that the most potent recipe for growth is a country that scores highly on the fundamentals but currently has low income per capita. And that these economies should deliver the highest growth in income per capita as they catch up with those with similar fundamentals. The bank projects the Top 20 largest economies by 2050 to be China, United States, India, Japan, Germany, United Kingdom, Brazil, Mexico, France, Canada, Italy, Turkey, South Korea, Spain, Russia, The Philippines, Indonesia, Australia, Argentina and Egypt. It identified the thinly-populated, aging economies of Europe as the probable future losers.

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