Through this economic frenzy, three major events defined 2013, these were:
One: Investment Grade
According to Fitch, among the key ratings drivers were the following:
"The Philippine economy has been resilient, expanding 6.6 percent in 2012 amid a weak global economic backdrop. Strong domestic demand drove this outturn. Fitch expects GDP growth of 5.5 percent in 2013. The Philippines has experienced stronger and less volatile growth than its 'BBB' peers over the past five years.
Improvements in fiscal management begun under President Arroyo have made general government debt dynamics more resilient to shocks. Strong economic growth and moderate budget deficits have brought the general government (GG) debt/GDP ratio in line with the 'BBB' median. The sovereign has taken advantage of generally favorable funding conditions to lengthen the average maturity of GG debt to 10.7 years by end-2012 from 6.6 years at end-2008. The foreign currency share of GG debt has fallen to 47% from 53% over the same period."
"Everybody was happy when we received the first investment grade rating from Fitch then from S&P, which made us stronger early this year," said Harry Liu, president of Summit Securities Inc.
Two: Fed Tapering
“Tapering” is a term introduced into financial use on May 22, when U.S. Federal Reserve Chairman Ben Bernanke said in his testimony before the U.S. Congress that that Fed may taper - or reduce - the size of its bond-buying program known as quantitative easing (QE). The program, designed to stimulate the U.S. economy, also served the secondary purpose of supporting financial market performance in recent years.
Three: Yolanda Sweeps a path of destruction
- The economy grows by 7.4 percent in the first three quarters, the fastest in SE Asia according to the NSCB.
- PHL gets an investment grade rating upgrade from the world’s most influential credit rating agencies – Fitch Ratings, Standard & Poor’s and Moody’s Investors Service – all in one year.
- The US Federal Reserve announces the possibility of tapering its bond-buying program
- Bangko Sentral ng Pilipinas slashed the interest rates of special deposit account or SDA
- Typhoon Yolanda destroys large areas in Central Philippines
- Following the first two investment grade ratings and the strong first economic growth, the benchmark PSEi reached its 31st record close this year to 7,392.20 on May 15.
- Overseas Filipino remittances hit record-high $2.062B in October.
- PHL current account surplus surges in Q2
- PNoy signs sin tax bill into law, to take effect Jan. 1, 2013
- Pacquiao did not declare income from US in 2009 – BIR's Henares
- PHL payments surplus surges to four-month high in November – Bangko Sentral
- Megawide and India's GMR make highest bid for Mactan-Cebu airport project
- Iconic Rolls-Royce opens PHL showroom as demand picks up