The advancement of internet technology and increased levels of communication and information sharing means more people than ever have the ability to take part in online trading.
The Philippines, for instance, has noted record growth in this sector. Compounded with the strength of the Peso, technology means that the country is seeing an increase in trading. The GDP for the country was up by 6.1% by the end of 2018, with the services sector seeing the largest slice of the GDP at 56.2%, followed by industry at 34.8% and agriculture, forestry, hunting and fishing at 8.9%. The region’s tourism appeal is likely the reason for the rise in both services and industry.
Philippines Trading is Booming
The PSE (Philippines Stock Exchange) reached its all-time high of 9058.62 points in January 2018, and the prognosis for 2019 is equally as favorable for the country. Indeed, the PSEi increased 5.63% since the start of 2019 for its trading on CFDs (contracts for difference), which allow traders to speculate on the price increase or decrease of an asset without owning the actual asset itself. Part of the reason for the increased trading volume in the Philippines is due to it being easier to trade now than it was before, as online trading platforms have enabled casual traders to analyze information in large volumes while simplifying the process of making trades. This has opened up an otherwise complicated and seemingly out-of-reach sector, enabling regular citizens to see which areas of the economy might be profitable and which ones would make for good investments and potential asset price increases.
Tourism Contributes to Growth
The Department of Tourism announced that at least 7,127,168 foreign tourists visited the Philippines by the end of 2018, a 7.68% increase on 2017. The department also announced that while Boracay’s closure during 2018 was set to stall tourism, it in fact allowed other regions to benefit from the local economic growth that tourism brings. Indeed, Palawan, Bohol, Clark and Davao saw growth as visitors opted for other areas as Boracay was regenerated from April to October. Indeed, 27,000 tourists were either refunded or rebooked flights and 600 flights were redirected to these other areas. While the practical growth to the local economy could be seen through the development of hotels, restaurants, farms and services, the increased internet connection and advancement of the more rural areas put locals in a position from which they could begin their trading journeys through better online access. This could also explain why the PSE hit its all-time high, as referenced earlier, as the country was generally given a stronger digital presence.
The interconnected nature of the world means countries that aren’t traditionally thought of as financial hubs are able to indulge in the industry and take advantage of the measures that make other trading nations so profitable. The Philippines is a strong example of how a country’s tourism increase and GDP strength has given rise to greater stock trading in the nation.