PH Won’t be a

Bubble Anytime

Soon

Filipinos remain as the world's most confident consumers--

in spite of dropping 3 points in overall optimism during the previous quarter -

- according to latest survey results of market research firm Nielsen.

• Consumer spending contributed

Php 1.18-million in the 3rd quarter

of 2013 alone.

• Rising trend in Construction and

Real Estate segment.

• Increased purchasing power among

the middle class.

• The BPO industry continues to post

growth as shown by the nearly

unchanged office space take-up in

the major CBDs.

This optimism has helped spur the country's

economy:

However, some experts believe that the country is

on its way to an economic bubble.

Points from Jesse Colombo, a Forbes contributor:

The bank's ultra-low

lending rates is

encouraging both

consumers and

companies to spend

beyond their means.

Sudden withdrawal of

quantitative easing on

emerging market

economies will put

pressure on PH's

financial markets and a

global crisis will put OFW

remittances at risk.

He also warned about an

impending property

bubble due to the

overbuilding of

properties from the real

estate sector, which has

expanded the country's

economic growth in the

past years.

NO IMPENDING ECONOMIC BUBBLE

Colombo ignored the fact that at a time when

a bubble should be supposedly occurring, PH

still has an account surplus due to the high

volume of OFW remittances.

Boo Chanco of the Philippine Star wrote that:

Banks are actually prudent in lending money

and that the Bangko Sentral ng Pilipinas has

also tightened its policies and mandated a

limit on real estate and mortgage loans.

PROPERTY MARKET IS STRONGER THAN

EVER

Demand for office and retail spaces also

shows no signs of slowing down, thanks

to the rising BPO sector even in next

wave CBDs in other parts of the

Philippines.

Colombo underestimated the contribution of

OFWs and the middle-class sector to the

economy.

There is an existing demand in residential

space and so far, the number of

developments in the pipeline is just enough

to cater to that demand.

THEREFORE, FILIPINOS HAVE ENOUGH REASON TO

REMAIN OPTIMISTIC

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