Financial Advisors Congress 2015 Part 2: Jonathan Ravelas and the economy of the Philippines

Jonathan Ravelas is the First Vice president and Chief Market Strategist of BDO Unibank of the Philippines
He educated everyone about the economy of the Philippines today and related it to the upcoming election next year. He also cited the relevance of it in terms of our economic growth. All statements came from the speaker.
I definitely agree to one of the professor when he said  “Whoever becomes the next president, our economy will still continuously grow”. – Bernie Villegas

“Develop markets like the US, Europe and Japan are struggling and having an under growth of 1-2%, while emerging markets like the Philippines is growing with 5-6%”.

“Before China is growing 10-14% but this won’t happen for such a long time and you are currently seeing them decelerating to 5-6%”.

“World growth is growing between 3-3.5% a year and we are expecting this within the next 2 years, but this is the new normal.  Before financial crisis our world growth is 4-5%”.
“Major economies (US, Europe and Japan) should grow 1-2% near the world growth”.
“Philippines have a stellar performance of growth since 2010”.

“There’s so much money right now in the economy today. The average yield for the investors should be higher than inflation rate, minimum return average 5yr inflation plus 1.5 % which represents real interest rates.   It is equal to 5.5%”.

“The Philippine peso performed very well against its peers in South East Asia, their currency depreciated 20% while Philippines lost 5% only”

“GDP is the speedometer of the country today and we are growing at least 5-6%”.

“Our growing population is only 2%. Thanks to the evolution of mobile phone because we don’t hold our partners anymore. 150x is the average times you hold your phone compare to your partner that’s only 10x average”.

“Inflation has gone down to 0.4% last September”.

“Election means there will be so much spending and that will increase inflation”.

“We noticed that weaker peso will lead you to Super Malls. Bigger peso will boost the economy”.

“Rising interest rates is just around the corner”.

“The Philippines is the sunniest economy in Asia since 2010”.

“BPO is creating a lot of activities in the economy”.

“The proliferation of call centers will create communities and will move the growth in Visayas and Mindanao. The real estate, malls and infrastructures are moving in the Visayas and Mindanao region. Luzon is contributing 60% growth”.

“There’s a lot of growing population and middle class that will create consumer spending”.

“Kapag malakas ang piso our malls have 1,510 people na naglalakad in SM. Pag mahina piso marami asa SM 1572 people”.

“The govt invested into the K12 program, the first graduate of K12 soon will be the ideal workforce. Over the next 2-3 years sila na ang magbibigay ng demand and will get job asap”.

“There are 8-10millions OFW’s that sends 23 billion a year, while 1.3 million full time employees the IT-BPO also known as call center industry delivers 16-17 billion in the economy”.

“The Social cost of the family lessens the risk of crime, staying here in the Philippines will create jobs and boost the economy because all your spending is here”.

“Food retail and constructions should be really good investments”.

“Majority of the stock market peaks after 36 months of the president”.

“The pillars of our growth are because of these: Growing population, growing middle class, Strong IT-BPO industry and OFW remittances”.

“The best time to enter the market is now. Correction is the best time”.

“As long as there is a smooth transition of power it doesn’t matter. Appreciate the fundamentals food retail and construction invest more and pray harder”.

“We were the Bahamas when General Luna was still alive. We are moving towards becoming a leader in the industry. Filipinos are long term investors, Philippines are like a bamboo coz it sways and flexible every time”.

“Think about the President that you will vote. He/she should be doing 3 things like a CEO. He needs to think about the overall health of the company and shareholders, the growth of the company and sustainability”.

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