Economy

Economic growth in the Philippines slowed from 7.6% in 2010 to 3.7% in 2011, and public-private partnerships (PPPs) that would have boosted public spending were delayed. The Aquino administration says that the wait is due to strict anti-corruption measures, and promises that 2012 will see these projects move forward. In the meantime, in late 2011 Aquino unveiled a spending package worth $1.6bn to bolster sagging demand. Local manufacturing plays a smaller role in the Philippines than it does in several of its ASEAN rivals, while the service sector, and in particular business-process outsourcing, has a bigger role. The economy also has a unique dependence on remittances from Filipinos who work overseas. This chapter features interviews with Cesar Purisima, Secretary, Department of Finance; Ramon R del Rosario Jr, Chairman, Makati Business Club; Jaime Augusto Zobel de Ayala, Chairman and CEO, Ayala Corporation; Karel De Gucht, EU Trade Commissioner; Helen Dee, Chairperson, Rizal Commercial Banking Corporation; and Washington SyCip, Founder, SyCip, Gorres, Velayo & Co.