An Economic Thrilla in Manila
Incredible. Amazing. While other Asian countries describe themselves with superlatives, the Philippines national ad campaign promises only "more fun."</br></br>Filipinos have reasons to smile. Asia's perennial underachiever is outperforming. This week saw more successes: Moody's upped its outlook on the country's credit rating to "positive," citing prudent fiscal management. An anti-graft drive notched a win with a guilty verdict in the impeachment trial of a former chief justice. And first-quarter gross domestic product growth of 6.4%, announced Thursday, defied most forecasts as well as the mood in the global economy.</br></br>But to build on the promise, the Philippines must deliver on three main growth drivers.</br></br>Business-process outsourcing is already booming due to strong English skills, cheap rent and low wages. A fondness for basketball and Hollywood movies is an advantage, too, when it comes to staffing call centers with workers who can make a cultural connection with U.S. customers. Starting from scratch a decade ago, the sector generated revenue of $11.25 billion last year. CLSA says that could double by 2015.</br></br>Government officials say tourism is a low-hanging fruit. They aim to triple arrivals to 10 million by 2016. A $5 billion gambling hub under construction will help. So too a surge in new planned hotel rooms and a rising tide of Chinese visitors, whose numbers were up almost 30% last year.