GMA leadership inspires JP Morgan to adopt ‘positive’ outlook on RP

While many tourists may be avoiding the Philippines due to unflattering travel advisories issued by some countries, many investors are likely to come in having received the go-signal from a prestigious international financial institution.

This elated no end President Arroyo who released yesterday to the Palace Press the Dec. 6 Asia Credit Market Research analysis in Singapore of the JP Morgan Chase Bank.

"Our positive view remains grounded on the belief that President Arroyo is leading economic policy on a fundamentally better path," the JP Morgan stated.

The JP Morgan particularly cited the Arroyo administration’s being able to steer the Philippines to a growth of 2.7 percent for the third quarter this year compared to the three-percent GDP growth forecast of their economists for the Philippines this year.

"Another major plus is that this good news has been communicated to investors, led by the President herself," the JP Morgan cited.

"President Arroyo’s state visit to the US raised the Philippines’ profile among investors, heightening their awareness of the positive developments since she took office in January. At a time when emerging market investors are looking to re-allocate their portfolios, the telling of this constructive, high-yield story was very opportune," they noted.

Presidential Spokesman Rigoberto Tiglao released yesterday to the Palace Press Office the JP Morgan feature about the country’s economic prospects entitled: "Philippines: Increase Weight Based on Fundamental Gains."

Tiglao, himself a former economics writer, said JP Morgan enjoys a high credibility.

"They (JP Morgan) are considered seriously. They are quite known to be objective and they have just issued this analysis that they have become, their optimism about Philippine prospects have improved and the President was very happy about this analysis," Tiglao told Palace reporters.

"So they (JP Morgan) have recommended an increase in overweight. In investment banking jargon, this means essentially, they’re recommending their investors to increase their exposure to the Philippines," Tiglao said.

JP Morgan though re-stated its previous observation in its Nov. 1 "Emerging Markets Outlook" that for the Philippines "the battle to win over investors, given the country’s past stumbles, is a protracted one." It cited, however, President Arroyo and her economic team promise will be able to show tangible results of the reforms her administration were pursuing.