Nigel..you might be right in investing in Philssorry don't know how to put links
SWISS BANK PUTS PHILIPPINES AS BEST PLACE TO INVEST IN
RP has lowest macroeconomic risk in Asia - Credit Suisse
MANILA, Jan. 14
The Philippines has the lowest macroeconomic risk in Asia, indicating it is the most ideal place in the region to invest in, the latest report of Switzerland-based Credit Suisse has revealed.
The country has macro risk score of 46, compared to China at 54 and Thailand at 70. Low scores indicate less risks of investing in a country.
The global market equity report ranked the Philippines no. 1 among Asian countries, except Japan, because of its current account surplus, domestic sales exposure and net commodity exports.
'The Philippines, China and Thailand look the most attractive on this measure,' it noted.
The Philippine current account balance recorded an average of 2.5 percent of gross domestic product (GDP) compared to Thailand at 1.4 percent and China at 4.3 percent.
Current account balance is the difference between a country's income from foreign sources and foreign obligations payable, excluding net capital investment.
'We prefer the countries with current account surpluses,' it noted. 'This is critical factor, for if a current account deficit cannot be financed, either the currency has to weaken or there has to be domestic deflation.'
The Philippines posted a surplus in its current account balance with a ratio of three percent to GDP.
This means that when a country's current account balance is positive, also known as running a surplus, the country is a net lender to the rest of the world.
The Credit Suisse noted these factors make markets in Asia better investment destinations than other emerging markets and nearly all developed countries.
It pointed out share prices in emerging markets in Asia have cheaper valuations and offer stronger returns on equity investments.
