RP Among ‘Resilient’ Countries – MasterCard

10 February 2013
The Manila skyline at night. (Yen Baet)
The Manila skyline at night. (Yen Baet)

The Philippines' robust economic growth has made it among the ''resilient'' countries in the Asia Pacific region and the Middle East, the worldwide survey revealed.

In its latest Insights Report, MasterCard survey revealed that the Philippines along with Japan and Hong Kong ranked highest on the index as ''relatively resilient.''

The MasterCard survey assesses the extent to which a slower growing global economy and specifically a slowdown in merchandise exports, will impact the resilience of consumer confidence in key markets in Asia Pacific and the Middle East.

Following the three nations are Singapore, Saudi Arabia and Kuwait. UAE was ranked lowest or ''very vulnerable.''

The index and its accompanying reports do not represent MasterCard's financial performance, the company said.

''Markets with the highest level of consumer confidence, as well as those that are most resilient to a slowdown in merchandise exports have the strongest potential to weather the economic downturn,'' MasterCard said.

''At the opposite end of the spectrum, markets with very low consumer confidence and those that are also most vulnerable to a slowdown in merchandise exports have the least potential,'' the company added.

Yuwa Hedrick-Wong, MasterCard global economic advisor and co-author of the report said the strong growth in global demand that they saw during the decade of 2000 to 2010 was unique in many ways.

Hedrink-Wong said this was underpinned by an unprecedented increase in global liquidity which provided a tremendous boost to the export-oriented economies in Asia/Pacific and Middle East.

''But growth in global demand will be a lot weaker than before. Putting it bluntly, a repeat performance is highly unlikely,'' he said.

For many markets in the Asia Pacific and the Middle East, especially the export-oriented ones, Hedrink-Wong said the outlook of a slower growing global economy will mean weaker demand for exports.

''Their ability to leverage domestic demand, especially private consumption, will be critical in supporting stronger economic growth. The extent to which they may succeed will in turn depend on how resilient consumer confidence is in these markets,'' he added.

The report, meanwhile, found Hong Kong, Indonesia, Thailand, Philippines, India and China to be well positioned with the strongest potential to leverage private domestic consumption to support economic growth.