MANILA, Philippines – Recently, the Philippines’ Gross Domestic Product (GDP) growth for the third quarter of 2014 was released. Coming in at 5.3%, it was 1.1 percentage points (pps) lower than the previous quarter’s growth rate. What does this mean for a regular person like you?
First of all, there is no need to fret. As Finance Secretary Cesar V. Purisima pointed out, the 5.3% growth rate is still much higher than the other economies in Asia, and marks the 11-quarter growth streak of the Philippines - a good trajectory.
A key factor behind this growth is real estate. Performing dual roles of driver and indicator, real estate, a.k.a. the private construction sector, contributed 1.1 pps to third-quarter GDP growth. However, this industry, as well as the other growth drivers like net exports, was offset by the contraction of the agricultural sector.
So no doubt, the country’s property market remains robust. Is this something to expect again in the first quarter of 2015, after we take into consideration the Christmas remittances from OFWs? While it remains to be seen, we can certainly be optimistic.
Here are some facts that might help convince you that real estate continues to be a key investment for you and an important driver of the Philippine economy:
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