Risks. Foreign investors are still cautious about the country’s poor governance, political instability, corruption and poor fiscal health.

The ADB believes that the short burst of growth in the first half won’t be matched in the second half since the low-base effects of pet capital projects will fade, inventory rebuilding will begin to normalize and the global economy remains weak, according to BusinessWeek Online.

The country will have to maintain financial reforms, boost trade, reduce poverty levels, and improve employment and infrastructure to be on par with regional competitors. [New iShares ETFs Hit the Market.]

For more information on the Philippines, visit our Philippines category.

  • iShares MSCI Philippines Investable Market Index Fund (NYSEArca: EPHE): top sectors include financials (46.4%), utilities (17.2%), telecom (15.7%) and industrials (15%)

Max Chen contributed to this article.