Philippines Shipping Report Q1 2016
BMI View: We anticipate 2016 to be a good year for the Philippines' port sector, with growth to furtherbuild up from positive 2015 figures. Economic development and regional trade expansion are increasingtrade volumes. Meanwhile, infrastructure investment has temporarily resolved congestion issues andplanned projects will provide further accommodation for rising throughput over the medium term. Alsocontributing to our positive outlook, the Cabotage Act signed in 2015 lowers entry barriers for foreignshipowners, boosting shipping activity in the country.
Over 2016-2019 BMI forecasts an average of 5.5% real growth in total trade supported, with steady growthexpected at the Port of Cebu and Manila International Container Terminal (MICT) respectively, thecountry's two largest ports. We project population growth to average at 1.5% and real GDP growth 5.9% forthe same period, supporting our view for steady growth in trade volumes. Relatively low unemployment(6.3% in 2015) and a large active population (63.5% in 2015) are supporting consumer demand and, in turn,imports.
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