MANILA, Philippines - Economic prospects seem rosier for the Philippines next year after a not-so-bad 2009, with resilient remittances and post-typhoon rebuilding efforts likely sustaining the momentum, according to New York-based think tank Global Source.

In an Oct. 27 country report titled ?The Sun Also Rises,? the report also said the two leading candidates in the 2010 presidential elections based on the latest popularity surveys were acceptable to the business sector and could be expected to manage the economy competently.

The two are Senators Benigno ?Noynoy? Aquino III of the Liberal Party and Manuel Villar of the Nacionalista Party.

The report, written by Filipino economists Romeo Bernardo and Margarita Gonzales, said the Philippines could still expect a growth in gross domestic product (GDP) of 1-1.5 percent this year on surprisingly robust remittances from overseas Filipinos. A faster GDP growth of 4 percent was projected for next year.

?Prospects look particularly promising for 2010 when the country will be led by a new president brought peacefully to power while the world economy gains strength. Such would usher in continued remittances, export recovery, and a honeymoon period with a new leader that could only improve the environment for investments,? the report said.

Global Source said the growth drivers could strengthen next year as overseas workers gain greater confidence with improvement in income prospects and especially with export recovery, additional activity from elections, and a potential honeymoon period of important economic sectors with a new president going through a smooth transfer of power.

?But tepid world recovery would still serve to limit the country?s growth even as the Asian region is slated to be the strongest rebounder after the global crisis,? it said.

The Philippine government continues to target a GDP performance at 0.8-1.8 percent and 2.6-3.6 percent this year and next, respectively.

?With calamity effects likely to be temporary and intentionally subdued, we expect headline inflation to average at around 3.2 percent this year and about 4.1 percent in 2010, though keeping in mind other supply-side risks particularly with oil prices on a rise as the global economy recovers,? the report said.

It noted that monetary authorities themselves were expecting inflation at 3 percent this year and about 3.4 percent in 2010.

Global Source said the inflation-targeting Bangko Sentral ng Pilipinas would likely begin raising policy rates as a ?preemptive? measure only in the latter part of 2010 when the economy picks up speed and the output gap starts to narrow.

Key interest rates have been kept on hold since August after a monetary easing cycle that slashed key rates by a total of 200 basis points since December last year.

?The Philippine scenario does not look as bleak as one would expect after a great flood,? the report said.

?A robust current account was able to mask increased fiscal worries by allowing a healthy amount of foreign currency borrowing to occur in what appears to be another case of overseas Filipinos saving the day. This in a nutshell keeps financial markets in still quite good shape,? the report said.

On the race toward the 2010 elections, Global Source is expecting a closer match by May as other candidates begin to gain national exposure.