ECO­NOMIC GROWTH AND STOCK MAR­KET PER­FOR­MANCE

Business World - - FRONT PAGE -

Stock mar­ket per­for­mance — which is rep­re­sen­ta­tive of the largest com­pa­nies that in­flu­ence eco­nomic ac­tiv­ity — has tra­di­tion­ally been viewed as a pre­dic­tor of fu­ture eco­nomic per­for­mance as stock prices re­flect ex­pec­ta­tions about prospects for over­all eco­nomic growth. But has this been the case for the Philip­pines? This graph shows the per­for­mance of the bell­wether Philip­pine Stock Ex­change in­dex (PSEi) and Philip­pine gross do­mes­tic prod­uct (GDP) over the years.

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