Capitalizing on Change

PH economy seen to have continuous recovery

With the country’s gross domestic product (GDP) surging by 6.8% in 2016-- the highest growth in three years and even ahead of economic powerhouse China- majority of the population has expressed optimism that the economy is now on the path towards continuous recovery.

Moving forward, the economy looks to be in good shape with GDP expected to grow between 6.5% - 7% in 2017.

According to BDO Capital and Investment Corp., the investment banking arm of BDO Unibank, the expected economic growth will be more inclusive and trickle down to the masses.

“A lot of people deferred expansion and investment decisions while waiting for the outcome of the elections,” said BDO Capital president Eduardo V. Francisco. “People are now optimistic and bullish on the continuing growth of the Philippines. Companies are revisiting their growth and expansion plans in anticipation of continued growth.”

Francisco noted that the business community has expressed its appreciation for the Duterte administration’s efforts to strengthen the peace and order situation in the country, as well as to reduce red tape and accelerate infrastructure development.

The latter includes the government’s willingness to listen to unsolicited proposals from the private sector on infrastructure projects, and to revisit the Metro Rail Transit project that aims to build a subway connecting Makati, Pasay and Taguig.

To this end, BDO Capital has been working with multilateral funding institutions and the local bourse to develop infrastructure financing for the equities and bond markets to supplement bank financing.

“The whole BDO Group has always been supportive of infrastructure development. We continue to dialogue with the government and potential bidders on how we can help finance projects,” Francisco said. “We are not only involved in the advisory stage and funding the winning bidders via project financing, we are also working with regulators to further develop infrastructure financing from the bond and equities markets.”

BDO Capital provides diversified services to its clientele including trading and underwriting securities, loan syndication, financial advisory services, and project finance services.